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The Asian economic crisis and the aviation industry: impacts and response strategies

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Most airlines across Asia are struggling to cope with an unprecedented economic crisis which they have very little control over, and the survival of some remains in doubt. The continuing uncertainty generated by the crisis has accelerated the process of change in the aviation industry and has highlighted the need for adaptability, and its effects have been deeper and longer lasting than previously anticipated. After a year-long slump in the Asian travel market, airlines are now considering a range of options and rehabilitation programmes including a series of cost-cutting measures. There appears to be a trend towards the extension and consolidation of strategic alliances, structural and operational reorganization, and the application of new technologies. The success of these measures will become apparent over time, but action is necessary to minimize the adverse consequences of the crisis which has dominated the region since 1997.
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Document Type: Research Article

Affiliations: Marketing and Tourism Division, Nanyang Business School (Box B1A17), Nanyang Technological University, 639798 Singapore

Publication date: July 1, 2000

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