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A case study of the Thai Airways International Public Company Limited and their expansion and growth through joint marketing.

Purpose: This chapter considers talent management in ‘situ’, at a time of unprecedented disruption, and identifies implications for practice and study.

Methodology/approach: We compare normative advice from the talent management literature with publicly available accounts of talent management strategies employed during the Covid-19 pandemic. We also include perceptions of employees from publicly available reviews (Glassdoor, 2020a), and a brief personal account.

Findings: Hospitality and tourism organisations are encountering unprecedented pressures for change, primarily due to Covid-19 as well as the sustainability and social justice movements. We identify three organisational responses to the pandemic – closing/contracting operations, consolidating around areas of strength, and creatively pivoting in new directions. Innovations in talent management were found to vary accordingly, including: humane downsizing and pay cuts; training and development (for managers and front-line employees, including in emotional intelligence, resilience, and delivering service excellence online); new talent acquisition, through new programmes, structures, roles, and partnerships; an enhanced employee value proposition, including safe and fun work environments, as well as improved pay and benefits; commitments to social equity and sustainability; courageous, creative, and resilient leadership; and effective communication. Despite these innovations, employee reviews suggest that top performing organisations continue to fall short on work–life balance, un-social working hours, inadequate compensation, and poor-quality managers.

Practical implications: Ever increasing business complexity requires skilled senior managers in multiple domains, and empowered, decentralised unit-level managerial and owner competence (with skills in emotional intelligence, collaboration, and negotiation). Front-line employees, capable of delivering excellence in customer service (despite disrupted circumstances), are more essential than ever. Successful enterprises, both now and in the future, will undoubtedly be those that prioritise talent, throughout all levels of organisation.

Research limitations/implications: Future research should undertake a more comprehensive investigation of talent management strategies employed (including from small business owners), as well as employee perceptions of their effectiveness (considering socio-economic differences as well as gender and race). Research is also needed with respect to the perceived value of organisational commitments to sustainability and social justice initiatives.

Originality/value: This chapter uniquely considers talent management at a time of crisis. Methodologically, it uses publicly available data of employee perceptions of their employers.

Takes a strategic journey into the future of the airline industry and air travel. The strategic trends and profound changes that are sweeping through the world airline industry and air travel currently, as well as into the next millennium, are analysed. So too are the responses of the lead airlines that are leading the charge in shaping as well as responding to these changes, which will present new opportunities, threats and challenges to airlines with global aspirations operating on the world stage. Singapore Airlines was analysed with British Airways and United Airlines as the leading European and US comparison airlines, respectively, for comparative and benchmarking purposes.

This chapter examines the issues of the low-cost carriers (LCCs) in Japan and their impact on the domestic and international aviation markets. “Genuine” LCCs, such as Peach Aviation and Jetstar Japan, began their operations in 2012 to follow the new movement of low-cost and low-fare airlines, which are different from the “new emerging” airlines, such as Skymark and AIRDO that appeared in the late 1990s. We discuss the recent history of LCCs in Japan, the characteristics of each LCC, the competitiveness of the high-speed railway in the domestic market, the impact of open sky policies, and the contribution of inbound foreign visitors to the international passenger volume increase. As LCCs in Japan have recently begun operations, they can continue to play a significant role in the Japanese aviation market.

The case intends for students to delve into aspects related to changes in the business environment, dynamics of competition in the airline industry, factors responsible for the collapse of an airline that had once remained a highflyer, and aspects related to change management in reviving a business that has undergone a trauma of crisis.

Jet Airways was all set to fly by the July-September quarter of 2022. The protagonist, Sanjiv Kapoor, had recently joined as the CEO of Jet Airways. Jet Airways was founded in 1993 when the Indian Government decided to liberalize the Indian skies. Flying highs and lows in its journey of 25 years, Jet Airways got grounded on 17 April 2019 because of a lack of funds. There were unsettled claims of ₹370bn against financial creditors and employees. Though liquidation of assets would have been a route to settle claims, it was decided to sell assets of the defunct airline by means of a formal resolution process. On 17 October 2020, the Committee of Creditors (CoC) approved the resolution plan of the consortium of Jalan and Kalrock Capital, which were the new promoters of the airline and were working to bring Jet Airways to its glory. These promoters appointed Kapoor to share the responsibility of Jet 2.0. Kapoor had to lead the change at Jet 2.0. Kapoor examined the idea of “look forward and reason back” as multiple challenges existed amongst opportunities for the carrier in its second chance at life. The case documented the entire saga of the rise, fall and revival of Jet Airways.

Undergraduate and Post Graduate Students

Teaching notes are available for educators only.

CSS 11: Strategy.

European air transport policy, emerged through the confluence of case law and legislation, in four broad areas: liberalization, safety and security, greening, and the external policy. Following the implementation of the single market for air transport, policy shifted to liberalizing and regulating associated services and in recent years to greening, the external aviation policy, and safety and security. Inclusion of air transport in the Environmental Trading Scheme of the European Union exemplifies the European Commission’s proactive stand on bringing the industry in line with emission reduction trajectories of other industries. However, the bid to include flights to third countries in the trading scheme pushed the EU into a controversial position, causing the Commission to halt implementation and to give ICAO time to seek a global multilateral agreement. The chapter also discusses how the nationality clauses in air services agreements breached the Treaty of Rome, and a court ruling to that effect enabled the EC to extend EU liberalization policies beyond the European Union, resulting in the Common Aviation Area with EU fringe countries and the Open Aviation Area with the USA. Another important area of progress was aviation safety, where the EU region is unsurpassed in the world, yet the Commission has pushed the boundary even further, by establishing the European Safety Agency to oversee the European Aviation Safety Management System. Another important area of regulatory development was aviation security, a major focus after the woeful events in 2001, but increasingly under industry scrutiny on costs and effectiveness. The chapter concludes by arguing that in the coming decade, the EU will strive to strengthen its position as a global countervailing power, symbolized in air transport by a leadership position in environmental policy and international market liberalization, exemplified in the EU’s external aviation policy.

Strategic management, system control management (balance score card).

Post graduate student, managers.

This case examines “Garuda Indonesia” the National Indonesia airline and its exceptional performance in recent years due to successful strategic decision making. This comprehensive case is structured in five parts highlighting: Garuda's recent success based on positive strategic management; Garuda's history and how it shaped its success against strong competition through effective leadership and the challenges it has overcome; an examination of the development within the Indonesian airline industry; a focused examination of strategic development with Garuda, including competition policy; operational planning and delivery; debt restructuring and product/service strategy; and an examination of the ongoing challenges, including governmental pressures and political maneuvering.

Students will identify opportunities and threats, including strategic issues derived from the external environment facing by Garuda Indonesia. Students will identify strengths and weaknesses from the internal environment faced by Garuda Indonesia. Students will develop strategic alternatives to inform business decisions. Students will give recommendations including priority planning for the next three to five years.

Teaching note.

This chapter considers the productivity of 77 airlines between 1980 and 2013. We do so by estimating a stochastic frontier and decomposing the total factor productivity growth into efficiency, technical and scale efficiency change. Our results show that, on average, airlines increased productivity over the period but that, while efficiency and technical change improved, scale efficiency results indicate that the average airline moved away from the most productive scale size. This was especially so in the two decades after 1980. Comparisons between geographical areas, business models, networks and alliances are also made.