Skift Take

Legacy vs non-legacy, simple as that.

The differences lie in history. Since airline deregulation in the late 1970’s, America’s big three have struggled with “legacy issues”—an industry term for older workforces, higher salaries, pensions and union contracts that all add up to higher costs.

Not only are Asian airlines relatively unhampered by these issues, but they’re also blessed by the fact that their region is seeing phenomenal growth in passenger traffic. Asian airlines in recent years have accounted for half of total industry profits. And those earnings are wisely reinvested into newer planes, cutting-edge seats and innovative entertainment systems.

WSJ explains it further in a short video, based off Skytrax survey:


The Daily Newsletter

Our daily coverage of the global travel industry. Written by editors and analysts from across Skift’s brands.

Have a confidential tip for Skift? Get in touch

Up Next

Loading next stories