A vested, personal interest to many management consultants!
There has been a continuation in growth of the airline industry over the past decade, much of which has been driven by low-cost carriers who have been expanding rapidly in emerging markets. However, profit margins are small and people have grown accustomed to enjoying significant improvements in their experiences with things they buy.
For many air travel remains a disappointing experience. It is a challenge for airlines to address, because although improving the overall customer experience (reservation, in flight service etc) is cheaper than upgrading the aircraft, it is often difficult to implement and requires a shift in the company culture.
Aviation and airlines is a long running unifying force amongst consultants! Put two consultants in a room and even if they are competing for the same business a safe topic will always be the merits and failings of the airline industry based on bitter personal experience. Given the norm is now cattle class this can become something of an obsession for some. This article is serious research but is a very readable briefing on the current challenges in the sector: some obvious and some less so.