Air Transport World

Nationalism is a poor pilot.

Events at PAL and elsewhere suggest that nationalism and ethnic pride remain powerful forces in Asia

It is now nearly two years since the onset of the Asian crisis fundamentally altered the near-term prospects for the region's airlines, sending a few of the less-well-managed into financial tailspins and upsetting the growth plans of all. Among the most consequential changes is a seeming willingness to consider commercial cooperation on a network basis.

Prior to the downturn, Asia's largest carriers had tended to hold themselves aloof from the evolving global airline alliances. Understandably, long-term double-digit traffic growth, full business-class cabins and limited fare competition gave them little incentive to pursue such arrangements. …

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