National airlines are facing severe comp from a new generation of cheaper rivals. By cutting their costs and offering cheap fares ,budget airlines have caught up, and in some cases overtaken, national carriers in reputation and popularity. overstaffed and and regularly appoint new inefficient national carriers find it hard to comp and regulary appiont new managers to turn them around. These new managers come up with ideas to turn the airiines into more efficien and comp operations. Even so, they find it hard to stay ahead of low-cost airlines. Just to break even is a tremendous struggle and they usually make enormous losses. Such rivalry is good for consumers, but price-cutting means that some well-known national carriers may not survive. They will become obsolete unless they switch to the practices of their low cost comp This will mean improving switch to the practices of their low cost comp This will mean improving their comp and diversifying into other services