The 20th century has seen massive transformation in the transport sectors of many countries by imposing considerably displacement on both people and companies involved in the provision of transport services. Fuel has been one of the prevailing issues subjugating the aviation industry for the past few years. The costs of jet fuel have significantly risen over the past few years, putting consistent pressure on airlines companies to maintain profit. The purpose of this study was to determine what is the biggest managerial challenge facing the airline industry in the 21st century. There are various business issues affecting the operation of airlines companies both directly and indirectly. These issues will affect the strategic decision of the airlines industry. The present economic crisis and instability in jet fuel price has caused shrinkage in business and increased intense competitive rivalry in the airlines companies. It is obvious that the economic trends affect the airline industry. Henceforth, the airlines companies try to maximize the positive forecast through strategic decisions. The airlines companies are affected by micro and macroeconomic factors. The major factors that affect the industry are fuel prices, economic growth, rate of interest and employees' salaries. .
1. Introduction.
Aviation plays a crucial role in the economic prosperity. It contributes to each and every individual's quality of life by allowing them to visit friends and relatives abroad, travel to explore new places and to shrink the borders of the world (Air Transportation Association, 2001). In the 21st Century, sustainable development is one of the greatest challenges and opportunities that the aviation industry is overcoming. The aviation industry is an enormous and growing industry. Air travel plays a vital role in economic growth and world trade. It is expanding for either business purpose or leisure travel.