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Alliances between companies are an example of a collaborative strategy adopted in anticipation of highly uncertain markets. Since 1980, the commercial airline industry has been affected by a progressive liberalization worldwide. In this historical context, most airlines reacted with defensive movements in the face of high competition. In the case of airlines in the Spanish market, one of the largest in the world due to the weight of the tourism sector in its economy, airlines responded in various ways to the intensification of competition. Iberia, the main Spanish airline, established different defensive alliance policies. In the 1980s, alliances were mainly collaborative. Since 1998, airline alliances have become coopetitive in nature, as was the case with the creation of One World group (American Airlines, British Airways, Cathay Pacific, Qantas and Iberia). The partners began to interact in a more horizontal way, maintaining various agreements (code-sharing, handling, schedule coordination, shared sales, fleet maintenance) without renouncing their independence in the face of global competition. Iberia has subsequently modified the composition of its portfolio to move towards a more vertical collaboration with the integration into the IAG Group (Iberia, British Airways, Air Lingus and Vueling). This second phase is a quest to increase market power with deep changes in the nature of its alliances while maintaining coopetitive alliances.

Corporate Social Responsibility (CSR) reporting has been widely accepted as a vital tool for communicating with stakeholders on a range of social, environmental, and governance issues, but how companies define, interpret, apply, integrate, and communicate their CSR efforts and impacts in corporate reporting is anything but a straightforward task. The purpose of this chapter is to explore the concept of materiality in CSR reporting and demonstrate practical examples of good CSR and Sustainable Development Goals (SDGs) reporting practices. We chose the aviation industry because of its economic relevance, constant growth, and future expected changes in the aftermath of COVID-19. In addition, airlines affect many of the SDGs directly and indirectly with contending results. This chapter is timely because of the growing willingness by companies to integrate CSR and environmental, social, and governance (ESG) thinking into the corporate strategy and business operations using materiality assessment and enhancing their competitive advantage and ability to maintain long-term value and because ESG and ethical investing have become part of the mainstream investing. Thus, this chapter contributes to an understanding of the wide range of existing and new reporting frameworks and regulations and reinforces the importance of discussing how this diversity of approaches can affect the work toward worldwide comparability of CSR and sustainability reporting.

This study examined the factors influencing willingness-to-repurchase for each class of airline service, and integrate the constructs of service quality, satisfaction and willingness-to-repurchase which were rooted on Engel-Kollat-Blackwell (EKB) model. The study focuses on the domestic and international arrival of passengers at Murtala Muhammed International Airport in Lagos and Nnamdi Azikwe International Airport in Abuja. Information was gathered from domestic and foreign passengers who had post-purchase experience and had used the airline's services more than once. The survey data were obtained concurrently from arrival passengers at two major international airports using an electronic questionnaire through random and purposive sampling techniques. The data was analysed using the ordinal logit model and structural equation model. From the 606 respondents, 524 responses were received but 489 responses were valid for data analysis and reporting and were obtained mostly from economy and business class passengers. The study found that the quality of seat pitch, allowance of 30 kg luggage permission, availability of online check-in 24 hours before the departing flight, quality of space for legroom between seats, and the quality of seats that can be converted into a fully flatbed are the major service factors influencing willingness-to-repurchase economy and business class tickets. Also, it was found that passengers' willingness to repurchase is influenced majorly by service quality, but not necessarily influenced by satisfaction. These results reflect the passengers' consciousness of COVID-19 because the study was conducted during the heat of COVID-19 pandemic. Recommendations were suggested for airline management based on each class.

The COVID-19 pandemic has had an unprecedented impact on almost all sectors, but the airline industry has been globally most affected. Although recent years have witnessed an increase in attention to corporate social responsibility (CSR) reporting, the disclosure within the airline sector has been historically limited. This paper aims to explore the impact of the COVID-19 pandemic on social and environmental reporting and financial performance of airlines operating in the UK.

The paper applies content, textual and financial analysis to 16 company-year observations covering two fiscal years, 2018 and 2020, of eight airlines operating in the UK. A coding structure is based on the Global Reporting Initiative guidelines. NVivo is used for textual comparative analysis.

The research reveals that social disclosures exceeded environmental disclosures in the period before and during COVID-19. However, the pandemic has shown a significant increase in environmental rather than social disclosures. The study evidences the dominating themes of social and environmental disclosure, showing changes between 2018 and 2020. The study finds the extent of negative impact of COVID-19 on airlines’ financial performance. A period of crisis prompts companies to release more information, with a positive correlation between higher debt levels and increased disclosure.

The findings complement the emerging empirical evidence on the impact of COVID-19 on CSR reporting and demonstrate how challenges posed by the COVID-19 crisis affect the disclosure practices in the airline industry.

This study aims to examine the mediating and moderating processes that link airline brand image to passenger loyalty through perceived value.

The research participants were Taiwanese passengers with experience travelling abroad by air. Structural equation modelling and multigroup analysis were used to investigate the effect of airline brand image and perceived value on the loyalty of passengers using full-service and low-cost carriers.

For both airline types, airline brand image had a significant and positive effect on passenger perceived value. Perceived value had a significant and positive effect on passenger loyalty, perceived value was a crucial mediator and airline type was not a key moderator in the model.

In this study, focusing on the perspective of Taiwanese passengers, a conceptual model of the factors that lead to passenger loyalty, with a focus on brand image, was developed. This paper contributes to the literature and application field by examining the mediating effect of perceived value and the moderating role of airline type in the aviation industry; on the basis of the results, potential recovery strategies for airlines in the post-COVID-19 era are provided.

本研究檢驗透過知覺價值將航空公司品牌形象與乘客忠誠度連結起來的中介和調節過程。

受訪者是曾經有搭乘飛機出國旅行經驗的台灣乘客。本研究採用結構方程模式和多群組分析進行驗證, 分別從搭乘全服務型航空與低成本航空的乘客探討航空公司品牌形象和知覺價值對乘客忠誠行為的影響。

不論是就全服務型航空或低成本航空而言, 航空公司品牌形象對乘客知覺價值都具有顯著的正向影響, 知覺價值對乘客忠誠行為同樣具有顯著的正向影響; 知覺價值是一個重要的中介變數, 而航空公司類型不是關鍵的調節變數。

在這項以台灣乘客的視角為重點的研究中, 開發了一個以品牌形象為重點的導致乘客忠誠度因素的概念模型。本研究通過檢驗知覺價值的中介作用和航空公司類型在航空業中的調節作用, 為文獻和應用領域做出了貢獻; 最後根據研究結果, 提供後疫情時代航空公司的潛在恢復策略。

este estudio examinó los procesos de mediación y moderación que vinculan la imagen de marca de la aerolínea con la lealtad de los pasajeros a través del valor percibido.

los participantes de la investigación eran pasajeros taiwaneses con experiencia en viajes al extranjero por vía aérea. Se emplearon modelos de ecuaciones estructurales y análisis multigrupo para investigar el efecto de la imagen de marca de la aerolínea y el valor percibido en la lealtad de los pasajeros que utilizan líneas aéreas de servicio completo y de bajo costo.

para ambos tipos de aerolíneas, la imagen de marca de la aerolínea tuvo un efecto significativo y positivo en el valor percibido por los pasajeros. El valor percibido tuvo un efecto significativo y positivo en la lealtad de los pasajeros, el valor percibido fue un mediador crucial y el tipo de aerolínea no fue un moderador clave en el modelo.

En este estudio centrado en la perspectiva de los pasajeros taiwaneses, se desarrolló un modelo conceptual de los factores que conducen a la lealtad de los pasajeros, con un enfoque en la imagen de marca. Este documento contribuye al campo de la literatura y la aplicación al examinar el efecto mediador del valor percibido y el papel moderador del tipo de aerolínea en la industria de la aviación; Sobre la base de los resultados, se proporcionan posibles estrategias de recuperación para las aerolíneas en la era posterior a la COVID-19.

In recent years, the airline industry has been growing and transforming rapidly in the Asia-Pacific area. This study analyzes and benchmarks the comparative operational efficiencies of the major Asian air carriers. Data envelopment analysis model and disaggregate output efficiency measures are used to evaluate the operational efficiencies of 31 Asian airlines from 2015 to 2019. The findings suggest that nonflag carriers, low-cost carriers, and high-income regions' carriers have significantly higher levels of efficiency than flag carriers, full-service carriers, and low-income regions' carriers in overall, revenue, and passenger traffic efficiencies. The efficiencies between alliance carriers and nonalliance carriers along with those of ASEAN and non-ASEAN carriers are not significantly different.

The purpose of this study is to propose a methodological approach for modeling catastrophic consequences caused by black swan events, based on complexity science, and framed on Feyerabend’s anarchistic theory of knowledge. An empirical application is presented to illustrate the proposed approach.

Thom’s nonlinear differential equations of morphogenesis are used to develop a theoretical model of the impact of catastrophes on international business (IB). The model is then estimated using real-world data on the performance of multinational airlines during the SARS-CoV-2 (COVID-19) pandemic.

The catastrophe model exhibits a remarkable capability to simultaneously capture complex linear and nonlinear relationships. Through empirical estimations and simulations, this approach enables the analysis of IB phenomena under normal conditions, as well as during black swan events.

To the best of the author’s knowledge, this study is the first attempt to estimate the impact of black swan events in IB using a catastrophe model grounded in complexity theory. The proposed model successfully integrates the abrupt and profound effects of catastrophes on multinational corporations, offering a critical perspective on the theoretical and practical use of complexity science in IB.

Multi-criteria decision-making (MCDM) techniques are decision support systems that provide systematic approaches to solve hospitality and tourism (H&T) problems while minimizing the risk of failure. However, less is known about the application of MCDM techniques in H&T research. This study aims to systematically assess the use of MCDM techniques in H&T research to classify its current application and determine its application potential for H&T research.

This study used bibliometric analysis to examine all published MCDM studies focused on H&T industries, since 1997. In addition, topic modelling was used to discover key concepts. Finally, top cited studies in terms of total citations per year and total citations were qualitatively reviewed for more insights.

The findings revealed an ongoing interest in applying MCDM techniques in H&T research. Specifically, the extension of fuzzy theory in MCDM techniques is burgeoning among H&T researchers. However, a certain number of MCDM techniques seem to be ignored in this field with a repetitive application of MCDM techniques in particular areas.

The data for the current research was solely retrieved from Scopus and other databases were not included. Therefore, future research is called for to re-examine the study by considering data from various databases.

This study contributes to extant H&T literature by identifying the most prolific and influential countries, journals, publications and trends by applying MCDM techniques in H&T research, and elucidating the implications and characteristics of MCDM techniques in H&T research.

An important and challenging question for air transportation regulators and airport operators is the definition and specification of airport capacity. Annual capacity is used for long-term planning purposes as a degree of available service volume, but it poses several inefficiencies when measuring the true throughput of the system because of seasonal and daily variations of traffic. Instead, airport throughput is calculated or estimated for a short period of time, usually one hour. This brings about a mismatch: air traffic forecasts typically yield annual volumes, whereas capacity is measured on hourly figures. To manage the right balance between airport capacity and demand, annual traffic volumes must be converted into design hour volumes, so that they can be compared with the true throughput of the system. This comparison is a cornerstone in planning new airport infrastructures, as design-period parameters are important for airport planners in anticipating where and when congestion occurs. Although the design hour for airport traffic has historically had a number of definitions, it is necessary to improve the way air traffic design hours are selected. This study aims to provide an empirical analysis of airport capacity and demand, specifically focusing on insights related to air traffic design hours and the relationship between capacity and delay.

By reviewing the empirical relationships between hourly and annual air traffic volumes and between practical capacity and delay at 50 European airports during the period 2004–2021, this paper discusses the problem of defining a suitable peak hour for capacity evaluation purposes. The authors use information from several data sources, including EUROCONTROL, ACI and OAG. This study provides functional links between design hours and annual volumes for different airport clusters. Additionally, the authors appraise different daily traffic distribution patterns and their variation by hour of the day.

The clustering of airports with respect to their capacity, operational and traffic characteristics allows us to discover functional relationships between annual traffic and the percentage of traffic in the design hour. These relationships help the authors to propose empirical methods to derive expected traffic in design hours from annual volumes. The main conclusion is that the percentage of total annual traffic that is concentrated at the design hour maintains a predictable behavior through a “potential” adjustment with respect to the volume of annual traffic. Moreover, the authors provide an experimental link between capacity and delay so that peak hour figures can be related to factors that describe the quality of traffic operations.

The functional relationships between hourly and annual air traffic volumes and between capacity and delay, can be used to properly assess airport expansion projects or to optimize resource allocation tasks. This study offers new evidence on the nature of airport capacity and the dynamics of air traffic design hours and delay.

The case study highlights two strategic angles – that of the business unit (business strategy, profitability, market leadership. organizational culture, operational turnaround, industry structure and competitive dynamics) and the owner (returns, repositioning strategy and funding plan). By the end of this case study, students would be able to understand the changing competitive forces of a dynamic industry; analyse the circumstances leading to a change in the control of a firm from the state to the private sector; understand the logic of acquiring a perennially loss-making firm operating in a volatile environment without a unique strategy; identify a firm’s strategic and operational choices for financial turnaround, return to profitability and regaining market leadership; and learn about the actual strategic realities and choices confronting a troubled business organization in a difficult industry.

When the Tata Group took over Air India on 27 January 2022 from the state that had ownership for 68 years, Air India was under a long spell of poor performance, bleeding losses and unmanageable levels of debt. Unsatisfactory customer service, management issues and competition were the key reasons. Therefore, a crucial question facing the group’s Chairman N. Chandrasekaran was what workable strategy he could use to reposition Air India and make it profitable again so as to recover the $7.5bn of estimated investment involved in the acquisition and turnaround.

This case study is intended for undergraduate and graduate executive education levels in business administration and management and allied subjects, particularly for courses in strategic management, marketing, financial management, turnaround and transformation, mergers and acquisitions and organizational change.

Teaching notes are available for educators only.

CSS 11: Strategy.