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FEATURE INDUSTRY

For instance in the early 1990s various Pan American’s tourist (economy) class in Indonesia’s Lion Air has over 500 A320s
European government tipped $3.7 billion 1952 – over 63 years ago! and 737s on order.
into Air France, $2.3 billion to Olympic The latest spate is a twist on events Singapore Airlines with a home market
Airways and $1.1 billion to TAP Air Portugal. of the 1950s and 60s that saw European of just 4.55 million Singaporeans has a
And the Italian government has poured airlines trying to stop innovations from US huge fleet of 101 all wide-body aircraft
billions into its national airline. airlines, such as economy class and giving while Cathay Pacific serving 6.9 million
In China the government stands behind music headsets free to passengers. has a fleet size of 146 wide-body aircraft.
its airlines, funding where necessary. US airline Trans World Airlines was One of the major criticism by US airlines
Thailand and Malaysia have also bailed threatened with being banned from is that Middle East airlines have massive
their airlines out at various times. Europe unless it charged $2 a passenger fleets of wide body aircraft with hundreds
for plastic headsets. more on order. Without those headline
Pirates or Pioneers? European airlines through the grabbing orders aircraft like the A380
For decades the fortunes of countries International Air Transport Association super jumbo and the new 777X would not
have been linked directly to trade and the even regulated how many vegetables could exists and aviation and thus the travelling
control of the trade routes with prosperity be served to an economy passengers – no public would be significant poorer.
not always going to the strongest but more more than three!
often to the most flexible to change. In the late 60s and 70s it was then Malaysian Deregulation Devastates US
In the 21st century with globalization – Singapore Airlines and Cathay Pacific that Airlines!
and thus open skies - in full swing, Middle snub their noses at convention daring to give Whereas once US airlines launched all
East airlines, are not only financially economy passengers free drinks. new major aircraft types that has shifted
strong but flexible because of their Those airlines emphasis on dramatically due to the lack of profitability
geographic location. innovation and putting the passenger first of US airlines because of deregulation.
(And we must remember it was US dramatically change travel habits. When the US de-regulated its airline
airlines that pushed Open Skies to give Emirates has won more awards since system on the 24th of October 1978
their airlines access to new markets.) its formation that any other airline and its it started a chain of events that has
While the boardrooms of United, list of industry leading innovations reads devastated the US airline system.
American and Delta would like to compare like a chronology of passenger firsts – At the time, US carriers generally were
the Gulf State airlines of today with the 16th seat back videos for all passengers, fax regarded as world leaders in terms of
century pirates - who gave the region its then machines, email and AVOD. service, networks, safety and efficiency,
name the Pirate Coast – who attacked ships Interestingly, while Emirates, Etihad and had been profitable in 17 of the
plying the Britain-India trade routes - the and Qatar appear to be the focus of envy and previous 20 years.
reality is that they have replaced US airlines criticism, there are many other significant However, a number of prominent
as the pioneers of the industry. shifts of influence and unprecedented economists, politicians and analysts,
The last major innovation from US buying sprees around the globe. foremost among them Alfred Kahn, the
airlines was American’s introduction of In SE-Asia, low cost king Kuala Lumpur chairman of the Civil Aeronautics Board,
the frequent flyer program in the early based AirAsia Group is set to become one believed that economic regulation was
1980s and the last cabin innovation was of the world’s largest A320 operator, while generally bad for the American consumer.

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