Originally published as Strategic Direction Volume 22 Number 6, 2006
ISBN: 1 84663 012 6
Guest edited by: Kim Foster, Managing Editor.
The airline industry has been under increasing pressure recently, from the increased competition of low-cost airlines and the terrorist events of 2001 to name but a few.
Various US airlines, including Delta and Northwest, have been declared bankrupt, oil prices have soared, and seat prices are still being forced down, the supply far outweighing the demand. This Special Issue looks at recent case studies of airlines in crisis (Continental Airlines), and also airlines which have excelled at expansion during this turbulent time such as easyJet and Ryanair, and offers examples of successful strategies previously used. The collection also features interviews with high-profile figures from airlines such as Qatar Airways, SWISS International Airlines, and British Airways' former low-cost carrier Go!
Contents:
Is win-win just pie in the sky?
This article discusses the conflict between British Airways and Gate Gourmet in 2005, and analyzes the type of negotiation skills that could have been used.
Can the aviation industry claw its way out of price-wars and into profit?: Assessing the long term future of the airline industry
This article aims to assess the long term future of the airline industry through analyzing data on service and safety for traditional and low-cost airlines.
Will size matter for Boeing and Airbus?: Manufacturers fly into new battle
Boeing has endured a period of internal turmoil that has seen the departure of two chief executives and one chief financial officer, not to mentioning allegations of industrial espionage among other scandals. That the company has emerged from the crisis stronger as a result is shown by the fact that Airbus might not enjoy the same degree of dominance it has done over recent years.
An interview with Barbara Cassani: "Sharp, shrewd and knowing''
Barbara Cassani, best known for founding the low-cost airline Go in the UK, also worked on driving London’s successful bid for the 2012 Olympic Games. This interview covers her opinions on a range of issues including her latest challenges.
Pricing aviation insurance: The issues faced by underwriters in the aviation industry
The article aims to develop pricing rules to be implemented in the face of conflicting risks and difficulties inherent in the insurance of the aviation industry. The author discusses the difficult considerations faced by underwriters in the insurance industry.
Easyjet and Ryanair flying high on the Southwest model: Charting the ups and downs of low-cost carriers
There was a time when the notion of commuting daily between Rome and London would have been considered far too timely – not to mention expensive! But today, for Italian financier Ettore Thermes, this is an everyday occurrence thanks to the advent of low cost airlines.
Delta Air Lines and baggage handling: Sky's the limit with RFID
The article provides valuable insight into how RFID technology can help reduce the amount of mishandled baggage within the US airline industry. A description of RFID is provided, and the author points out the advantages it holds over the existing method of using barcoding to track luggage. A case study of Delta Air Lines perfectly illustrates many of the issues raised. Several potential uses of RFID are discussed, and the author offers some speculation about future developments.
An interview with Mr Akbar Al Baker: The 2005 Airline Personality of the Year
Akbar Al Baker has been Chief Executive Officer of Qatar Airways since 1997 following a very successful career within the State of Qatar’s Department of Civil Aviation. The airline is recognized as one of the fastest growing in the world.
Emirates, American and Embraer: why are these three air industry companies beating the odds?: How two majors and one minor put culture at heart of success
There are certain factors that have facilitated the success of the companies featured in this article. The most evident candidate is the background culture that surrounds them.
The future of the airline industry: Going into free-fall or climbing steadily?
There are convincing arguments both for and against the airline industry recovery. This just demonstrates the complex nature of a business where companies can be bankrupt but emerge as fierce competition, fares can drop whilst oil prices soar and a legacy of regulation can pave the way for the industry to be on the brink of a huge opportunity- if only liberalization were introduced. The next few years will provide some more turbulent times.
Recovering from service failure: Generating profit through greater customer satisfaction
In this article, the authors make a clear statement about the connection between quality customer care, the importance of a service recovery strategy and the profitability of an organization.
An interview with Jürg Dinner: Head of Corporate Communications at SWISS International Airlines
Jürg Dinner was Head of Corporate Communications at Coca-Cola Switzerland, a post he has held for the last two years. He is now responsible for internal and external communications at SWISS. This includes media relations, the in-flight magazine and staff communications. This interview covers the key challenges he has faced.
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