... terrorist attacks of September 2001. Although this hurt the aviation industry the resulting turmoil provided an opportunity to reshape a troubled sector. While America's federal government propped up its ailing airline industry with cash and loan guarantees, the European Commission limited aid. Swissair and Sabena, the national carriers of Switzerland and Belgium respectively, filed for bankruptcy that October. The big winners of the shake-out were low-cost airlines who continue to grow in market share. The established network carriers slimmed down and began fighting back. Most of the big airlines have pursued marketing alliances. In October 2003 two European airlines, KLM and Air France, announced they were hooking up. In a further step towards market consolidation, talks began in October 2003 between the EU and the United States over extending the liberalization of transatlantic traffic. This could be a final momentous agreement that will alter the industry so it may begin a phase ...

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