Arthur D. Little's report explores the future of long-haul air travel and the importance of winning the battle in the sky to compete in the upcoming "hyper-consolidation" era. The low-cost model is emerging for long-haul flights, and airlines must act quickly to transform and position themselves to reinvent the long-haul travel experience and its associated business and operating model. The outcome of this battle will position airlines in the next era in the industry post the "hyper-competition" era, i.e. the "hyper-consolidation" era. The report suggests that airlines could become global industry shapers, "hunted pearls" that will be acquired and maybe disappear, or "valueless/commodified". The air-transport industry has been in an era of hyper-competition since the mid-2000s, and now airlines are preparing for the next battle in the sky: the fight for the long-haul traveler.
