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Article
Publication date: 3 June 2021

Manuel E. Pascual and Lisa Nicole Cain

The airline industry has been severely impacted by COVID-19 due to widespread travel restrictions. Its current response is crucial to ensure continued operations after the…

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792

Abstract

Purpose

The airline industry has been severely impacted by COVID-19 due to widespread travel restrictions. Its current response is crucial to ensure continued operations after the global pandemic is resolved. One resource the airlines are leveraging is loyalty programs. This study aims to examine the viability of leveraging loyalty programs in times of crisis.

Design/methodology/approach

This study employs a case study methodology to examine how one company, American Airlines, has used its loyalty program to survive a pandemic and alleviate the financial costs associated with limited and restricted travel.

Findings

American Airlines' AAdvantage loyalty program structure may be used as a benchmark to understand how airlines can anchor their loyalty base to reinvigorate travel interest and use these programs as safeguards in critical instances that may arise in the future.

Research limitations/implications

The case was bound by the fact that the pandemic was still a threat during the time of analysis. The findings of this case study go beyond the airline industry and may inform other hospitality and tourism organizations on the benefits of loyalty programs in times of financial distress.

Originality/value

This is the first known case study examining the strengths and opportunities of the structure of the American Airlines' AAdvantage program as a means for surviving in a time of crisis. Moreover, understanding how to mitigate the long-term effects of crises may help to inform future short-term strategies of airlines and other hospitality and tourism organizations for navigating unexpected shocks to their ecosystem.

Details

International Hospitality Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-8142

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Article
Publication date: 1 February 2000

Stephan A. Vander Kraats

Alliances and code sharing have become increasingly popular among airlines of all sizes as costs associated with expansion become impractical. To remain cost efficient and…

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1003

Abstract

Alliances and code sharing have become increasingly popular among airlines of all sizes as costs associated with expansion become impractical. To remain cost efficient and compete effectively in various markets, most airlines have formed alliances with other airlines to further strengthen their economic potential. Economic benefits of alliances and code sharing are examined. Either arrangement gives the airline a competitive advantage over those that do not enter into these agreements.

Details

Competitiveness Review: An International Business Journal, vol. 10 no. 2
Type: Research Article
ISSN: 1059-5422

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Article
Publication date: 13 July 2015

Atul Arun Pathak

– This paper aims to explain how airlines in India and customers can both benefit by the unbundling of services.

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783

Abstract

Purpose

This paper aims to explain how airlines in India and customers can both benefit by the unbundling of services.

Design/methodology/approach

The paper explores how a recent regulatory change allowing unbundled services will affect the airline industry in India. Using illustrations, it highlights the benefits to the airlines and to the customers. It recommends the strategies that airlines can follow.

Findings

Airlines in India can now offer unbundled services. However, regulatory authorities need to allow greater flexibility to airlines. Given more flexibility, airlines can design offerings that will improve their profitability while simultaneously benefiting customers.

Practical implications

The government needs to go beyond the current regulatory changes. Providing increased flexibility will benefit both airlines and customers. Airlines would need to understand customers more intimately, experiment in the market, lobby for flexibility and develop strategic agility to benefit from the changed regulations on unbundled services.

Social implications

It concedes that airlines can now design unbundled services such that only those customers who value a service get charged for the service. Those customers who do not need a service can get away by paying a lower fare. The government has taken the first steps in the right direction. Once it provides greater flexibility, the airlines in India can benefit significantly.

Originality/value

The paper considers the unique context of the airline industry in India where recent regulatory changes are likely to make the industry more dynamic and improve profitability of airlines. It provides insights in to the challenges faced under the current system and recommends strategies for the government and companies to follow.

Details

Strategic Direction, vol. 31 no. 8
Type: Research Article
ISSN: 0258-0543

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Article
Publication date: 21 August 2007

Hamad Al‐kaabi, Andrew Potter and Mohamed Naim

This paper aims to evaluate the main business models used for airlines' maintenance, repair and overhaul (MRO) activities and determine the activities to which these relate.

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7511

Abstract

Purpose

This paper aims to evaluate the main business models used for airlines' maintenance, repair and overhaul (MRO) activities and determine the activities to which these relate.

Design/methodology/approach

A critical literature review is used to develop a conceptual model of MRO activities. This is evaluated through a SWOT analysis before an exploratory study of eight airlines is used to confirm the applicability of the conceptual model.

Findings

Four levels of MRO outsourcing are identified; from fully outsourced to fully in‐sourced. From the exploratory study it is shown that critical MRO activities such as line maintenance are frequently in‐sourced, while activities with low demand at an airline level such as engine maintenance are often outsourced.

Practical implications

MRO represent around 10‐15 per cent of an airline's operational costs. By identifying the strength and weaknesses of different MRO models, it is possible to evaluate alternative MRO strategies.

Originality/value

Unlike other research in maintenance which was aimed mainly at the manufacturing sectors, this research provides insights into the maintenance practises in a service sector. In particular this research studies the different outsourcing levels existing in airlines' MRO. The knowledge gained by understanding the mechanism of outsourcing in airlines' MRO can be further extended to other industries and help in best configuring their maintenance units.

Details

Journal of Quality in Maintenance Engineering, vol. 13 no. 3
Type: Research Article
ISSN: 1355-2511

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Article
Publication date: 18 May 2012

Stephen D. Treanor

The purpose of this paper is to develop a simple model illustrating the benefits of operating a diverse fleet of aircraft.

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1405

Abstract

Purpose

The purpose of this paper is to develop a simple model illustrating the benefits of operating a diverse fleet of aircraft.

Design/methodology/approach

The paper is theoretical. It describes how real options are beneficial to the firm in both capital budgeting and risk management. It illustrates the use of real options in the airline industry, and how real options are used as a risk management tool. Then the model is developed which illustrates how a diverse fleet can provide an airline protection against fuel price risk.

Findings

The results of the model show that a diverse fleet is value enhancing to an airline during periods when fuel prices are high or uncertain. Furthermore, this paper shows that a diverse fleet provides an airline with an operational hedge to jet fuel prices. Though the paper focuses on the airline industry, the results are applicable to those industries vulnerable to volatile input costs, and prohibitive abandonment and re‐entry costs.

Originality/value

The paper uses real option analysis to show the benefits for an airline deriving from operating a diverse fleet of aircraft.

Details

Management Research Review, vol. 35 no. 6
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 1 August 1996

Hannu Seristo

Summarizes European airline executives’ views on the reasons for the cost problem in major airlines and on the potential areas and measures of cost reduction in airline

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3978

Abstract

Summarizes European airline executives’ views on the reasons for the cost problem in major airlines and on the potential areas and measures of cost reduction in airline operations. Presents a survey where 28 executives from 17 European airlines were respondents. In the executives’ opinion the cost problem in major European airlines is primarily due to high salaries and inflexible work rules. Of the various functions in airlines, general administration was seen as the least cost efficient, whereas flight operation was seen as an area with most potential for cost reduction. Most respondent airlines had made route and fleet changes after the beginning of 1991 to reduce costs. Concludes from the survey results that privatization would be an important step towards more efficient airline operations. Also, flexibility from the labour unions would be very much welcomed.

Details

European Business Review, vol. 96 no. 4
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 1 March 1995

Vasanthakumar N. Bhat

Customer service is of significant concern to an airline passenger.The on‐time performance of an airline is one of the important indicatorsof customer service. Analyses…

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4229

Abstract

Customer service is of significant concern to an airline passenger. The on‐time performance of an airline is one of the important indicators of customer service. Analyses whether there is any relationship between airline flight delays and the financial situation of an airline. Identifies association between the probability of delay and financial factors of an airline using logistic regression. Indicates that the revenue growth and current ration reduce and leverage, airline size and operating revenue per employee increase the likelihood of a flight being delayed. Suggests the model presented should be of use to quality control professionals to identify causes of (binary) outcomes such as good and bad, on‐time and late, acceptable and not acceptable and so on.

Details

International Journal of Quality & Reliability Management, vol. 12 no. 2
Type: Research Article
ISSN: 0265-671X

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Case study
Publication date: 1 January 2011

Gaunette Sinclair-Maragh

Hospitality and tourism management; strategic management; marketing, transportation system management and human resource management.

Abstract

Subject area

Hospitality and tourism management; strategic management; marketing, transportation system management and human resource management.

Study level/applicability

Undergraduate in business and management and hospitality and tourism management.

Case overview

This teaching case outlines the historical background, successes and challenges of the national airline of Jamaica. It shows how a national airline, which is a heritage asset and one that has provided nostalgic and sentimental value to the Jamaican people and its passengers, had to be divested. The airline has been faced with several challenges; the major one being high-operating costs, especially in light of the global economic recession. The case also highlights the various procedures carried out by the Government of Jamaica before and after the divestment arrangement and also by the acquirer, Caribbean Airlines.

Expected learning outcomes

The student should be able to: first, differentiate among the various strategic management terms and concepts used in the case; second, explain the importance of strategic decisions versus emotional decisions; third, assess the environmental factors that impacted Air Jamaica's operation; fourth, analyse the environmental factors that should have been considered by Caribbean Airlines before making the decision to acquire Air Jamaica; fifth, carry out a comparative analysis of the various corporate-level strategies to identify the best option for the Government of Jamaica; sixth, propose reasons why Caribbean Airlines acquired Air Jamaica.

Supplementary materials

Teaching note.

Details

Emerald Emerging Markets Case Studies, vol. 1 no. 1
Type: Case Study
ISSN: 2045-0621

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Article
Publication date: 18 September 2021

Halimin Herjanto, Muslim Amin, Fevzi Okumus and Cihan Cobanoglu

This study aims to analyze low-cost-carrier (LCC) passengers’ comments about their flight experience on Asian LCCs.

Abstract

Purpose

This study aims to analyze low-cost-carrier (LCC) passengers’ comments about their flight experience on Asian LCCs.

Design/methodology/approach

A netnography approach was used to review and content analyzed 230 LCC passengers’ negative feedback on the TripAdvisor website.

Findings

LCC service failures generated 17 different negative emotions; among them, shock, disappointment and surprise were the most frequent emotions felt by passengers.

Practical implications

Maintaining a high level of customer service and ensuring easy access to information reduces LCC passenger’s negative emotions and meets LCC passengers’ service expectations and satisfaction. This study provides guidelines for the LCCs management who want to implement a netnography technique as a marketing research strategy.

Originality/value

A better understanding of this concept will help the LCCs industry to build a robust business model than competitors, maintain their competitive advantages in the global market and develop effective marketing strategies to attract more passengers.

航空服务:低价航空公司 (lcc) 服务失误和乘客情感体验摘要

研究目的 –

本文旨在分析低价航空公司乘客对他们在亚洲低价航空飞行体验的评价。

设计/研究方法/路径 –

本研究使用网络志方法审查和内容分析了230名低价航空乘客在TripAdvisor网站上的负面评价。

研究结果 –

低价航空公司的服务失误共产生了17种不同的负面情况。其中, 震惊、失望、惊讶为乘客最常感受到的情绪。

实践意义 –

保持高水平的客户服务并确保其轻松获取有效信息可以减少低价航空公司乘客的负面情绪, 提高他们的服务期望和满意度。本研究为拟实施网络志技术作为营销研究策略的低价航空公司管理人员提供了指导意见。

原创性/价值 –

更好地理解这一概念将有助于低价航空行业建立起比竞争对手更稳健的商业模式, 保持其在全球市场的竞争优势, 并制定有效的营销策略以吸引更多乘客。

Sevicio de aerolineas: problemas con provedores de bajo costo y experiencias emocionales de pasajerosResumen

Propósito

Este estudio analizó los comentarios sobre la experiencia de vuelo de los pasajeros de las aerolíneas de bajo costo (LCCs, por sus siglas en inglés) de Asia.

Diseño/metodología/método

Se utilizó un enfoque de netnografía para revisar y analizar el contenido de los comentarios negativos de 230 pasajeros de LCCs en el sitio web de TripAdvisor.

Resultados

Las fallas en el servicio de las LCCs generaron 17 emociones negativas diferentes; entre ellas, conmoción, decepción y sorpresa fueron las emociones más frecuentes que sintieron los pasajeros.

Implicaciones prácticas

Mantener un alto nivel de servicio al cliente y garantizar un acceso fácil a la información reduce las emociones negativas de los pasajeros de las LCCs y cumple con sus expectativas de servicio y satisfacción. Este estudio proporciona pautas para los gerentes de las LCCs que desean implementar una técnica de netnografía como estrategia de investigación de mercados.

Originalidad/valor

Entender mejor este concepto ayudará a la industria de las LCCs a construir un modelo comercial más sólido que el de sus competidores, mantener sus ventajas competitivas en el mercado global y desarrollar estrategias de mercadotecnia efectivas para atraer a más pasajeros.

Aerolíneas de bajo costo (LCC), emociones negativas, falla en el servicio, destino turístico

Details

Tourism Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1660-5373

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Article
Publication date: 30 August 2021

Yazan Khalid Abed-Allah Migdadi

This study aims to identify the effective operational strategies for airlines in a pandemic that allow them to recover and bounce back smoothly.

Abstract

Purpose

This study aims to identify the effective operational strategies for airlines in a pandemic that allow them to recover and bounce back smoothly.

Design/methodology/approach

This study adopted quantitative methodology based on secondary data published by the airlines related to operational and performance indicators. The total number of airlines surveyed was 145. The sample of study covers all the following regions: Africa, Asia, Europe, the Middle East, North America and South America. The data analysis of this research passed through several phases to compare the situation before and during pandemic period.

Findings

The effective operational strategy patterns during the outbreak of the COVID-19 pandemic comprise three hybrid strategies and one scheduling strategy. It appears from these strategy models that four strategic alternatives are available for international airlines to adopt, while two strategic alternatives are available for regional airlines. The strategy alternatives for regional and international airlines are all effective, but those of the international airlines are the more effective ones.

Originality/value

Previous studies rarely adopted the theory of operations strategy configuration (emphasizing taxonomies-based perspective) and the organizational resilience theory (emphasizing capability-based perspective) to identify the effective airlines operations strategy patterns in a pandemic, that allow airlines to recover and bounce back smoothly by analyzing the practices of airlines from different geographic regions worldwide.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

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