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Size Of American Airlines Global Market

Rudyard Kipling’s famously said “East is East, West is West, and never the twain shall meet”.   Imagine if he were alive today to see the world as it currently is.   Do you think he would rethink his position?   The airline industry has been the cornerstone in integrating the global economy.   Businesses cross continents and global communication is easier than ever.      
The global market can be divided into North America, Europe, Asia/Pacific, Latin America, Middle East and Africa.   North America is the global leader in the airline industry with Europe and Asia quickly closing the gap in total revenue.   Latin America, the Middle East and Africa lag behind, as their economies are not as developed as the rest of the world. To fully understand global market share two key indicators -- RPK (revenue per passenger kilometers) and FTK (freight per tonne kilometers) have to be considered.   The two primary revenue streams for world airlines are passenger ticket sales and cargo.   Going forward, the airline industry will not significantly change the way they recognize their revenue.   Passenger sales and cargo are the lifeline of the business and the profits.
In an airline industry recent trend report given at an MIT Global Industry Board Meeting, regional trends of RPK and FTK show that North America, Europe and Asia/Pacific are four to six times the value of Latin America, the Middle East and Africa. The reason for this large gap is that North America, Europe and Asia/Pacific are economic world powers with developed economies where people can afford to fly as a means of transportation.   In undeveloped countries, flying is a luxury not a necessity, but as the graph indicates, the industry is growing, although slowly.   The most common modes of transportation in Latin America, the Middle East and Africa are through passenger vehicle or rail.    
Over the years, airlines have begun to develop other revenue streams, although they are small comparatively speaking. Through...