Published in 1998. The airline Industry has always been dynamic, innovative and challenging. While the dynamism has in the past tended to arise on the production side, a torrent of change on the commercial side is being unleashed by regularity liberalization. The magnitude and rate of change are also greater than anything previously encountered in the industry. This work is concerned with two distinct yet related transitions. The first is general, potentially affecting the strategic management of all types of company-notably, but not exclusively, in North America, Europe, Latin America, and parts of Asia. It is a transition to a new paradigm of strategic management in the growing number of airlines which participate in liberalized and increasingly competitive markets.