‘Loss leader’ airline for profitable tourism?

Tuesday, 5 June 2012 01:56 - - {{hitsCtrl.values.hits}}

Countries have used their national airline as a ‘loss leader’ to promote tourism. If this is the case, then a fair share of a country’s tourism success should also be attributed to the national airline, particularly if the airline is losing money. If this is not the case, then beckons the question, “Why run a national airline at a loss?”

Airlines like Emirates have proved that it could enable national tourism while being profitable. By contrast, Malaysian Airlines has struggled with mounting losses. Both destinations are tourism success stories!