The airline industry is currently faced with its longest and deepest crisis to date: many airlines are losing hundred of millions of US dollars, several have collapsed entirely and others have been rescued by their governments. This crisis has been precipitated by external shocks such as the attack on the Twin Towers in New York, the invasion of Iraq and the SARS epidemic. In addition, the effect of these events has been exacerbated by dynamic and potentially destabilizing internal developments. Comprehensive and thorough, this revealing book gives a detailed analysis of the crucial events and key developments which have impacted, and will continue to impact on the dynamics of the airline industry. Special attention is paid to: the key challenges faced by the airlines such as continued liberalization and 'open skies' the impacts of global alliances new low-cost and no-frills carriers on-line selling and distribution privatization the impact of disasters. Leading industry authority Rigas Doganis examines the future prospects for the changing airline business and assesses alternative policies which could help the sector adapt to the shifting marketplace. Ideal for students, researchers and professionals in the fields of economics and business, industry and transportation studies, this second edition of his definitive book brings the story right up to date.