Economics & Development

Financial consumer over-indebtedness has become a growing source of harm to individuals and households, with risks being exacerbated by the rapid expansion of digital lending, income instability, rising interest rates, and cost of living pressures. Financial sector authorities face the difficult task of identifying effective policy responses while avoiding unduly restricting access to credit. This Note aims to help authorities address these challenges by providing a holistic overview of financial consumer protection and personal insolvency policy measures, and other complementary initiatives (including on financial education and data), that can be employed to prevent, mitigate and resolve consumer over-indebtedness.

This chapter examines the structure, operation, and financial sustainability of airlines, with particular attention to the challenges faced by state-owned carriers. While national airlines often serve as symbols of national identity and support regional connectivity and economic development, many struggle with financial performance and debt burdens. The chapter explains how airlines function within the broader aviation value chain and provides tools for assessing their commercial and financial viability. It traces the evolution of the airline industry from the earliest commercial air services and the establishment of pioneering carriers such as KLM, Avianca, Qantas, Aeroflot, and Czech Airlines to the deregulation era that reshaped global competition. The chapter also explores industry vulnerabilities, including exposure to economic shocks, fuel price fluctuations, overcapacity, and low profit margins. Emphasizing the capital-intensive and service-oriented nature of the industry, it offers a framework for evaluating airline sustainability and guiding policy and restructuring decisions.