Planned economies and government control of major industries such as telecommunications, oil and gas, utilities, and manufacturing are giving way to private ownership. Privatization of airlines, airports, and air traffic control is increasing, often across country borders. The global marketplace is becoming a reality. Countries continue to negotiate unrestricted air service agreements with other countries around the globe. More diverse and open international financial markets allow airlines more flexibility in their operations.
Global alliances provide benefits of integration and scale to airlines and customers alike.
These trends of deregulation, privatization, and globalization have fostered competition and forced airlines to operate at much higher levels of efficiency. Airlines are increasingly focusing on their core business of attracting and keeping loyal customers, while seeking new ways to reduce costs. Emphasis is shifting to management of total life cycle costs. Airlines are looking for suppliers who can provide total solutions such as integrated systems, processes, and infrastructure to support the efficient use of airplane fleets. Airline operating expenses include all activities to attract customers and deliver passengers and cargo to their destinations.