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Article
Publication date: 13 September 2018

Andrea Caputo, Adrian Borbely and Marina Dabic

In an attempt to build upon existing theory, this paper aims to investigate the potentially reciprocal relationship between negotiation and strategy, and strive to…

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2509

Abstract

Purpose

In an attempt to build upon existing theory, this paper aims to investigate the potentially reciprocal relationship between negotiation and strategy, and strive to contribute toward a better understanding of the ways in which organizations negotiate.

Design/methodology/approach

Built upon the integration of two different bodies of literature, negotiation and strategy, and on the analysis of the case of Ryanair, this paper argues for an integrated approach to negotiation and organizational capabilities.

Findings

The case study allows for a clearer understanding of how negotiation capability can play a significant role in supporting the creation and sustainment of competitive advantage, even under unfavorable industry settings.

Originality/value

This paper contributes to theoretical development by offering new and insightful explanations of firms’ behavior, moving beyond the classic interpretation of industry dynamics, such as bargaining power. This study has implications for both practice and research, as it offers a better and more holistic understanding of the strategy-making process and the foundations of its success.

Details

Journal of Knowledge Management, vol. 23 no. 2
Type: Research Article
ISSN: 1367-3270

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Book part
Publication date: 21 October 2019

Richard Klophaus and Frank Fichert

There is a strong academic and professional interest in the changing business model of LCCs in Europe. Recently, even Ryanair which is often considered a European LCC role…

Abstract

There is a strong academic and professional interest in the changing business model of LCCs in Europe. Recently, even Ryanair which is often considered a European LCC role model has departed from the point-to-point paradigm by offering transfers within its own network. We first provide a general overview of recent changes in the business model of airlines that used to be categorized as LCCs. We then add to existing studies on LCC network strategies toward building connections. While we distinguish different approaches to accommodate transfer passengers, our analysis focuses on mesh networks as an airline network topology other than hub-and-spoke networks to provide online connections. A schedule analysis of Ryanair’s direct and indirect services at its base at Porto airport exemplifies that a mesh network might allow LCCs to go beyond stand-alone operations to become network carriers without requiring a complete transition of the generic LCC business strategy.

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Book part
Publication date: 21 October 2019

Rosário Macário, Hilde Meersman and Eddy Van de Voorde

Choosing the right pricing strategy is a complex decision, even though it is fundamental for transport companies whose activities are very diverse and subject to strong…

Abstract

Choosing the right pricing strategy is a complex decision, even though it is fundamental for transport companies whose activities are very diverse and subject to strong stochastic fluctuations. However, in spite of its complexity, adequate pricing can be a very relevant instrument to ensure the competitive position of the company.

European airlines are competing for the same passengers, often with different strategies and, as a consequence, with different financial results at the end of the fiscal year. The use of different pricing strategies is one of the potential explanations. This brings us to the research question of this chapter: How can air pricing strategies be used to support strategic aims, and what are the consequences?

This chapter first deals with the state of the art in air pricing strategies, followed by an analysis of the relationship between airline pricing, yields and profit. The focus then moves to a case study at Brussels Airport over the period 2012–2017. Following the entry of Vueling and Ryanair at Brussels Airport, the incumbent Brussels Airlines launched a very aggressive pricing war against the two newcomers. The result was a partial withdrawal by Vueling and Easyjet and an end to Ryanair’s expansion at Brussels Airport. Even without access to confidential detailed data, one can learn a lot from the reconstruction of the consecutive management decisions by the airlines involved.

Details

Airline Economics in Europe
Type: Book
ISBN: 978-1-78973-282-5

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Article
Publication date: 13 July 2015

Mark Thomas

This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its…

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Abstract

Purpose

This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry.

Design/methodology/approach

The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models.

Findings

The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

Details

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

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Article
Publication date: 1 April 2004

As a result of terrorism, world health scares and war, the air transport industry has been re‐shaped almost beyond recognition. And while much has been written about the…

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15533

Abstract

As a result of terrorism, world health scares and war, the air transport industry has been re‐shaped almost beyond recognition. And while much has been written about the impressive achievements of the low‐cost airline operators, up until recently the outlook has looked bleak for the larger, state run airlines.

Details

Strategic Direction, vol. 20 no. 4
Type: Research Article
ISSN: 0258-0543

Keywords

Content available
Article
Publication date: 28 May 2020

Cristina Cano Ortega

Este artículo tiene por objeto analizar uno de los casos más importantes en los últimos años en los que se han declarado nulas ciertas cláusulas abusivas incluidas por las…

Abstract

Purpose

Este artículo tiene por objeto analizar uno de los casos más importantes en los últimos años en los que se han declarado nulas ciertas cláusulas abusivas incluidas por las aerolíneas en los contratos de transporte aéreo con los consumidores, en concreto, se trata de la Sentencia de la Audiencia Provincial de Madrid, sección 28, de 26 de julio de 2017 y, especialmente, se estudiará la cláusula de cargo por remisión de la tarjeta de embarque.

Design/methodology/approach

A través del estudio de la mencionada sentencia, este trabajo mostrará cómo el contrato de transporte aéreo de personas siendo uno de los contratos más importantes actualmente, presenta una situación de especial desequilibrio y desprotección de los consumidores frente a las aerolíneas.

Findings

La falta de poder de negociación de los consumidores, las escasas alternativas que tienen en muchos casos y los precios generalmente altos de este contrato de transporte, hacen imprescindibles dispensar una protección adecuada a los consumidores en este contexto. Esto se puede lograr a través de leyes tuitivas que protejan sus intereses económicos y, especialmente como se analiza en el artículo, mediante la prohibición de cláusulas abusivas en los contratos de transporte aéreo.

Originality/value

El artículo hace un recorrido por algunas de las cláusulas abusivas incluidas en los contratos de transporte aéreo de pasajeros en los últimos años y muestra cómo debe evitarse que las aerolíneas impongan estas cláusulas que perjudican a la parte más débil del contrato y advierte que estamos aún lejos de conseguir una efectiva protección del consumidor en este ámbito como se explica con algún ejemplo final.

Details

Journal of Tourism Analysis: Revista de Análisis Turístico, vol. 27 no. 2
Type: Research Article
ISSN: 2254-0644

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Article
Publication date: 1 June 1999

David Pollitt

Presents a series of articles on each of the following topics: digital strategy in the next millennium (Digital strategy – a model for the millennium; Searching for the…

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2946

Abstract

Presents a series of articles on each of the following topics: digital strategy in the next millennium (Digital strategy – a model for the millennium; Searching for the next competitive edge; The technology link; Value web management opportunities; clash of the Titans: communications companies battle for new ground; and a guide through the maze); retailing and distribution in the digital era (The business case for electronic commerce; superdistribution spells major changes; VF Corp. sews up software operation; IBM seeks to harness digital revolution; Egghead’s bold move to a Web‐based strategy; achieving successful Internet banking; and enterprising uses for IT); and the changing shape of the aviation industry (boom times ahead for air cargo; United Airlines flies high through employee ownership; Asian practices to West at Cathay Pacific; and Ryannair strips to the bone).

Details

International Journal of Physical Distribution & Logistics Management, vol. 29 no. 5
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 12 June 2007

The paper aims to contrast the approaches to human‐resource management taken by two low‐cost airlines – Ryanair in Europe and Southwest in the USA.

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14603

Abstract

Purpose

The paper aims to contrast the approaches to human‐resource management taken by two low‐cost airlines – Ryanair in Europe and Southwest in the USA.

Design/methodology/approach

The paper considers the similarities between the two airlines before explaining that Southwest puts much more emphasis than Ryanair on the importance of treating its employees well. It examines what this means in terms of recruitment, recognition and reward.

Findings

The paper explores in particular the role of Southwest Airlines operations agents and finds that they are prepared and able to work anywhere – in the departure hall, at the gate, in the baggage hall, on the tarmac or aboard the aircraft – to help to ensure that flights leave on time.

Originality/value

The paper argues the case for putting employees first, on the basis that you treat your employees the way you want them to treat your customers.

Practical implications

Illustrates that there is evidently no single answer for success in the low‐cost airline sector – and so plenty to challenge the aspiring aviation entrepreneur.

Details

Human Resource Management International Digest, vol. 15 no. 4
Type: Research Article
ISSN: 0967-0734

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Book part
Publication date: 27 September 2021

Aleksandra Wegera

Carrier sanctions oblige commercial entities to check the validity of passengers’ documents and deny boarding where no valid documents are shown, or where fraud is…

Abstract

Carrier sanctions oblige commercial entities to check the validity of passengers’ documents and deny boarding where no valid documents are shown, or where fraud is suspected. The necessity to flee to safer countries at a time of particular political unrest has necessitated the use of fraudulent documents, which the sanction regime and subsequent case law have attempted to curtail. However, increased investigation into legitimacy of travel documents has induced the taking of dangerous routes to reach Britain. In particular, danger is posed by oncoming traffic, and where entry is attempted clandestinely, within lorries. Men, accounting for the majority of irregular entrants, are more likely to experience danger. Due to the very nature of their precarious position, potential asylum seekers may not hold travel documents, which induce the taking of dangerous routes to make asylum applications once in Britain. This chapter will attempts to link carrier sanctions, danger, and humanitarian obligations.

Details

Privatisation of Migration Control: Power without Accountability?
Type: Book
ISBN: 978-1-80117-663-7

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Article
Publication date: 1 February 2003

Philippe Callot

The success of the low‐cost airlines is for many a real surprise. Regarding two previous models developed by Michael Porter (3 basics strategies and value chain), we will…

Abstract

The success of the low‐cost airlines is for many a real surprise. Regarding two previous models developed by Michael Porter (3 basics strategies and value chain), we will attempt to show that the success of these different companies is a faithful reflection of strategic models set out and perfectly suited to the given context, here that of the air transport field. To “dissect ” the success of this phenomenon of low‐cost airlines, we will base our study, in the first section, on the case of EasyJet. In a given context, the supposed models of the low‐cost companies are a perfect illustration of the application of precise strategic concepts and models. Proof has been provided that low‐cost companies using sustainable value chains can be profitable and move steadily towards strategies of external growth (Ryanair recently acquired Buzz). In the second section, we will present a brief study covering a services marketing logic for Tours airport (France) with a logical diagram application.

Details

Tourism Review, vol. 58 no. 2
Type: Research Article
ISSN: 1660-5373

Keywords

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