... dependent on long-term trends in airline passenger traffic. And this trend can be explained by factors such as economic growth in developed and emerging markets, political stability, profitability of the airline industry, and the globalization and consolidation of the industry. Other important factors are limitations in air transport infrastructure such as government and environmental regulations and air traffic control. Finally product development strategy and overall competition between manufacturers also impact the market. Figure 1: World Air Travel, Revenue passenger miles in billions, excluding the former Soviet Union airlines. World air travel has been steadily increasing at an average annual rate of 5%, including in 1994 , with the exception of the year 1991 due to the Persian Gulf conflict. Despite the steady growth in traffic after 1991, most airlines have cut back their new aircraft orders, mainly due to their dismal financial performance, resulting in dramatic reductions in aircraft manufacturers' ...

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