Rethinking Airline Business Models

Rethinking Airline Business Models

Author: Julian Rossy

Publisher: Dike Publishers

Published: 2019-10-15

Total Pages: 0

ISBN-13: 9783038910947

DOWNLOAD EBOOK

The topic of business models in the commercial aviation industry has been researched by many scholars. They have revealed a phenomenon called "convergence of models": the business model of low-cost carriers goes towards full-service and the business model of full-service carriers goes towards low-cost. Using this phenomenon as a starting point, this thesis aims to rethink the way business models are perceived. From an airline-centered reflection, the goal is to develop a new terminology that is customer-centric. The ultimate target is to reduce the confusion of travelers flying on a given airline. To reach this result, the four generally accepted business models - low-cost, full-service, regional and leisure - are being broken down into components and patterns, resulting in a skeleton called "Airline Business Model Framework". This framework is used for the analysis of 40+ carriers in the perspective of building new strategies and develop a new terminology for the dominant business models. Based on many criteria, the author proposes four new terms for business models: "No-frills carriers", "Unbundlers", "Boutique carriers" and "Connectors". The differentiation between the models focuses on the service level provided to passengers, and not only on the structure of the airline itself. Successfully tested with the analysis of more than 130 airlines, the new terminology is a tool to better describe and differentiate airlines in the strong competitive landscape of the airline industry in this 21st century.


Designing and Executing Strategy in Aviation Management

Designing and Executing Strategy in Aviation Management

Author: Triant G. Flouris

Publisher: Routledge

Published: 2016-04-08

Total Pages: 208

ISBN-13: 1317152204

DOWNLOAD EBOOK

Designing and Executing Strategy in Aviation Management is designed to provide an intensely practical guide to this critically important topic. Comprehensive in coverage and easy-to-read in style, it allows both professionals and students to understand the principles and practicalities of crafting and executing business strategies with an aviation context. The result is a comprehensive and multifaceted teaching/learning package, which includes applied case studies on a wide range of airlines and aviation businesses, setting out how these organizations deal with strategy formulation and implementation in critical areas. Topics covered include: corporate strategy, generic strategy, competitive strategy, internal and external environment assessment, mergers, alliances, safety and security. Written directly for both aviation professionals and student courses in aviation strategy, aviation management and aviation operations, it will also be of great interest to aviation professionals in a variety of different fields, including airlines, corporate aviation, consultancy, etc., as well as academics within the field of aviation and those within the field of strategy and management science.


Managing Corporate Culture for International and Global Competitive Advantages in the Airline Industry

Managing Corporate Culture for International and Global Competitive Advantages in the Airline Industry

Author: Lisa Guhl

Publisher: GRIN Verlag

Published: 2016-11-24

Total Pages: 32

ISBN-13: 3668349487

DOWNLOAD EBOOK

Seminar paper from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7, University of applied sciences, Düsseldorf, language: English, abstract: Ever since globalization has started companies have been looking for ways to compete successfully on a global scale. Trends in the global environment such as rapid communication, technology innovation, and global sourcing models requiring to manage cultural differences are still challenging for many industries (cp. Yip, 2003, pp. 1–3). The airline industry being itself a reason for an increasing borderless world also faces these global trends and high competition due to expansion, consolidation, concentration, and alliances. Terrorism and rising costs for fuel, labour, maintenance, and security have not been the only threats for the industry. Also rising customer expectations e.g. regarding comfort, entertainment, experience, convenience, innovation, personalization and value for money require the airline industry to change dynamically. Moreover, airlines face demands for pollution control, corporate social responsibility, and sustainable travel. Rising competition from low-cost carriers is also relevant since their share of global capacity increased to more than 25 % in 2013. So, even if demand for air transportation has grown by an average of 9 % per year since 1960, and global airline revenues reached a new high of US$708 billion in 2013, airlines need to find ways to stand international and global competition as their environment potentially endangers profits and economic survival (cp. Lynes & Dredge, 2006, pp. 122–129; PricewaterhouseCoopers, 2014, pp. 2–3).


Driving Airline Business Strategies through Emerging Technology

Driving Airline Business Strategies through Emerging Technology

Author: Nawal K. Taneja

Publisher: Routledge

Published: 2017-03-02

Total Pages: 272

ISBN-13: 1351942824

DOWNLOAD EBOOK

In the rapidly evolving airline industry, new technologies play an increasingly critical role in the delivery of real and perceived value in reducing costs, enhancing revenue, and improving customer service and customer safety/security. This book focuses at a senior executive level, examining the key forces affecting the airline business and their potential in terms of short and long-term strategies. The author discusses the role of emerging technology on the airline industry, defined very broadly and including computers, information, databases, aircraft, telecommunications, Internet, wireless, speech recognition, face recognition, etc. His argument is that technology should not only be an enabler of business strategy but crucially the driver of business strategy. The central theme is the vital interaction between technology and business strategy across a wide spectrum of functions - executives sharing their insights of what is needed in terms of revolutions in consumers, technologies, and productivities. What has held airlines back are not so much legacy systems but legacy mindsets, organizational structures and processes, as well as the intelligent selection, investments, and implementation of value-adding technologies. The book is the outcome of the author's own experience while working with a number of airlines and his participation in many discussions with practitioners in the airline and technology firms.


Cleared for Take-Off

Cleared for Take-Off

Author: Thomas C. Lawton

Publisher: Taylor & Francis

Published: 2017-03-02

Total Pages: 235

ISBN-13: 1351951025

DOWNLOAD EBOOK

Competition in air transport has been transformed by industry liberalization initiatives, resulting in the emergence of a wide array of new airline start-ups. Restrictions on low fares have been removed, uniform control requirements have been established, and legislation has facilitated the proliferation of low-fare carriers and competition. The new breed of independent low-fare airlines (LFAs) use market freedoms to shake up the industry's competitive dynamics and offer the customer the alternative of low prices and basic service. A successful low fare business model requires a ruthless and relentless focus on cost cutting and increased operational productivity, combined with an ability to generate and maintain a cash surplus and a cautious but steady fleet and route network expansion. The mastery of these techniques has made Southwest and Ryanair industry leaders, but others such as EasyJet also have a proven record of profitability and market growth, despite not always being the lowest cost or price providers. In this comprehensive and topical study the author systematically provides: · a step-by-step approach to understanding the conditions and choices shaping airline competitiveness, and an assessment of the nature of the low fare market · a comprehensive study of the low fare airline sector's evolution and growth and arguments as to why the European low fare industry is here to stay despite the inevitability of a shake out (reminiscent of the early 1980s in the USA). · unique insights into the success of low fare market leaders in Europe, North America and Australasia and an examination of the experience of US new entrants in the post-deregulations era, to discern strategic lessons for their counterparts; · critical perspectives on strategic management principles and practices in modern airline companies, discussing strategies for survival, and comparing competitive strategies for the main low fare airlines and their limitations; · key reasons for the robustness of the low fare business model during industry crises The book also determines the conditions and strategies that shape sustainable advantage for LFAs in highly competitive deregulated markets where established airlines seek to force out new entrants and considerable political interference remains. Moreover, the book considers why, during the airline industry crisis of late 2001, the market capitalizations of low fare leaders held steady in the wake of the US terrorist attacks, while the major carriers on both sides of the Atlantic were decimated. Cleared for Take-Off is essential reading for airline executives, aerospace manufacturers, regulatory and government transportation agencies, researchers or students of aviation management, transport studies, the travel industry and/or corporate strategy.


Aviation Systems

Aviation Systems

Author: Andreas Wittmer

Publisher: Springer Science & Business Media

Published: 2011-08-17

Total Pages: 247

ISBN-13: 364220080X

DOWNLOAD EBOOK

This book aims to provide comprehensive coverage of the field of air transportation, giving attention to all major aspects, such as aviation regulation, economics, management and strategy. The book approaches aviation as an interrelated economic system and in so doing presents the “big picture” of aviation in the market economy. It explains the linkages between domains such as politics, society, technology, economy, ecology, regulation and how these influence each other. Examples of airports and airlines, and case studies in each chapter support the application-oriented approach. Students and researchers in business administration with a focus on the aviation industry, as well as professionals in the industry looking to refresh or broaden their knowledge of the field will benefit from this book.


Critical Analysis of Corporate Culture and Corporate Social Responsibility as Sources of Global Competitive Advantage in the Airline Industry

Critical Analysis of Corporate Culture and Corporate Social Responsibility as Sources of Global Competitive Advantage in the Airline Industry

Author: Lisa Guhl

Publisher: GRIN Verlag

Published: 2016-11-04

Total Pages: 82

ISBN-13: 366833479X

DOWNLOAD EBOOK

Bachelor Thesis from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: 1,5, University of applied sciences, Düsseldorf, language: English, abstract: Since globalization started companies have been looking for ways to compete successfully on a global scale. Trends in the global environment, such as worldwide sourcing models requiring the management of cultural differences, as well as rapid communication and technology innovation, are still challenging for many industries. The airline industry being itself a reason for an increasingly borderless world also faces these global trends and fierce competition. Numerous factors have caused a downward trend of profits in this industry. The first factor has been the deregulation process. Under regulation airlines could not compete on price. Therefore, differentiation was only possible by customer service or on-board entertainment. With the start of de-regulation most customers could not find much difference between the offerings of major airlines and became indifferent about which airline to choose. Airline tickets started to become a kind of commodity goods. So, although deregulation was thought to lead to lower entry barriers, decreasing concentration and competitive prices, practice turned out to be different: expansion and alliance strategies of leading airlines have increased concentration. Besides liberalization, other factors have been the economic slowdown in many countries, terrorism, and rising costs for fuel, labour, maintenance, and security. Also rising customer expectations e.g. regarding convenience, entertainment, innovation, and value for money require the airline industry to change dynamically. Moreover, airlines face demands for CSR and sustainable travel, including pollution control and reduction of noise and CO2 emissions. Competition from low-cost carriers also gains in importance since their share of global capacity increased to more than 25 % in 2013. So, even if demand for air transportation has grown by an average of 9 % per year since 1960, and global airline revenues reached a new high of US$708 billion in 2013, airlines need to find ways to stand global competition as their environment, as well as economic and social frameworks potentially endanger profits and economic survival.


The Evolution of the US Airline Industry

The Evolution of the US Airline Industry

Author: Eldad Ben-Yosef

Publisher: Springer Science & Business Media

Published: 2005-07-13

Total Pages: 316

ISBN-13: 9780387242132

DOWNLOAD EBOOK

The Evolution of the US Airline Industry discusses the evolution of the hub-and-spoke network system and the associated price discrimination strategy, as the post-deregulation dominant business model of the major incumbent airlines and its breakdown in the early 2000s. It highlights the role that aircraft – as a production input – and the aircraft manufacturers' strategy have played in shaping this dominant business model in the 1990s. Fierce competition between Airbus and Boeing and plummeting new aircraft prices in the early 2000s have fueled low-cost competition of unprecedented scope, that destroyed the old business model. The impact of the manufacturers' strategy on these trends has been overlooked by industry observers, who have traditionally focused on the demand for air travel and labor costs as the most critical elements in future trends and survivability of major network airlines. The book debates the impact and merit of government regulation of the industry. It examines uncertainty, information problems, and interest group structures that have shaped environmental and safety regulations. These regulations disregard market signals and deviate from standard economic principles of social efficiency and public interest. The Evolution of the US Airline Industry also debates the applicability of traditional antitrust analysis and policies, which conflict with the complex dynamics of real-life airline competition. It questions the regulator's ability to interpret industry conduct in real time, let alone predict or change its course towards a "desirable" direction. The competitive response of the low-cost startup airlines surprised many antitrust proponents, who believed the major incumbent airlines practically blocked significant new entry. This creative market response, in fact, destroyed the major incumbents' power to discriminate pricing – a task the antitrust efforts failed to accomplish.