The Airline Industry and the Globalization Paradox

Abstract

When it comes to globalization, the airline industry is wrapped in a paradox. For those who view the industry primarily from a passenger seat, the industry is one of the great drivers of globalization. The airline industry, despite all of the trials and tribulations associated with modern day travel, undoubtedly makes it easy to cross national boundaries; it reduces the time for traveling; it brings the opportunity to connect to human beings in all corners of the world; and it does so at relatively low prices to the flying public. Yet, despite these truths, the industry itself remains remarkably local in its focus and approach—and has been so since its inception. As you saw in Chapter 2, governments around the world, led by the United States, have been remarkably consistent in defending and supporting their nation’s “loss leaders,” often enduring tremendous financial burdens.

“It has been said that arguing against globalization is like arguing against the laws of gravity.” —Kofi Annan