In Section 2, the paper ®rst looks at the role of the
airline industry in Southeast Asian development since
World War II. The industry has gained added importance
as greater emphasis has been placed on exportoriented
industrialization, international tourism, and
international business services. Section 3 of the paper
examines the liberalization of the airline industry (i.e.,
privatization and deregulation) in the region as well as
the construction of new airports and expansion of existing
ones.