Strategies for managing risk in a changing aviation environment

Area of Science:

• Aviation economics and management
• Risk management in transportation
• Air traffic control and policy

Background:

• Airline economic performance is subject to significant volatility.
• High fixed costs and fluctuating demand dynamics exacerbate industry risks.
• Previous risk identification has not led to satisfactory solutions.

Purpose of the Study:

• To highlight the urgent need for strategic risk management in the airline industry.
• To identify key challenges that require immediate attention for industry sustainability.
• To emphasize the importance of addressing long-standing, yet unresolved, risks.

Main Methods:

• Literature review of identified risks in airline economic performance.
• Analysis of current industry challenges and their impact.
• Synthesis of strategic imperatives for risk mitigation.

Main Results:

• Economic volatility in airlines is a persistent issue.
• Many previously identified risks remain inadequately addressed.
• Urgent action is needed to implement effective risk management strategies.

Conclusions:

• Key challenges for the next decade include removing competition barriers, improving congestion management, and implementing open skies policies.
• Advancements in computer-centric air traffic management systems are crucial.
• Increased R&D for reducing environmental externalities is essential for the future of air transport.