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Book part
Publication date: 21 October 2019

Wouter Dewulf, Hilde Meersman and Eddy Van de Voorde

Air cargo was traditionally considered as a by-product of passenger air transport. However, in the last decade a defined strategy for air cargo has gained a key position in the…

Abstract

Air cargo was traditionally considered as a by-product of passenger air transport. However, in the last decade a defined strategy for air cargo has gained a key position in the strategies of most combination airlines, contributing largely to the cash and profit levels of these airlines. The global air cargo industry is nowadays a mature industry with over 60 billion USD in direct revenues. The strategic context is, therefore, far beyond the basic entrepreneurial framework in which an emerging and young industry tends to operate. This chapter aims to gain an enhanced insight into the strategies of airlines that transport cargo, either in the bellies of passenger aircraft or in full-freighter aircraft. A Cluster Analysis generates a typology of seven representative clusters of air cargo operators’ strategy models. The typology proposes a spectrum of strategies for air cargo, ranging from the cluster group “Carpet Sellers” up to the “Cargo Stars” cluster. While the former tend to be the small airlines or all-cargo carriers which barely manage to cover their costs with their revenues, the latter are profitable, very large globally operating airlines that focus on both passengers and cargo with passenger and freighter aircraft. Within this spectrum there are five other main strategy groups: the “Basic Cargo Operators,” the “Strong Regionals,” the “Low Cost Low Yielder,” the “Large Passenger Wide-body Operators,” and the “Premium Cargo Operators.” Our findings suggest the existence of superior strategy models that could be defined as “winning strategies” that differ according to airline size.

Details

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

Keywords

Article
Publication date: 28 March 2022

Mahour Mellat Parast and Adegoke Oke

In this paper, the authors draw from the concept of a “focused factory” to examine whether a focused strategy provides superior performance over a non-focused strategy in firms…

Abstract

Purpose

In this paper, the authors draw from the concept of a “focused factory” to examine whether a focused strategy provides superior performance over a non-focused strategy in firms experiencing service disruptions.

Design/methodology/approach

The authors test their hypotheses using panel data of the US domestic airline industry from 1998 to 2019.

Findings

Overall, the study findings show that a focused strategy provides superior financial performance over a non-focused strategy in both stable environments and unpredictable environments. The authors also find that the effect of service disruptions on profitability is less pronounced for firms following a focused strategy. This shows that focused firms need to grow over time to sustain profitability. Their post hoc analysis shows that for a non-focused strategy (but not for a focused strategy), firm size moderates the effect of service disruptions on profitability. This suggests that a firm pursuing a non-focused strategy can mitigate the negative effect of service disruptions by increasing its size.

Originality/value

This is the first study that examines the effectiveness of the focused strategy in mitigating service disruptions. The results provide further support for the effectiveness of the focused strategy in responding to service disruptions in service organizations.

Details

International Journal of Operations & Production Management, vol. 42 no. 5
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 August 2000

Daniel Chan

Distils the key insights for management development from the four research papers, in this special issue taken individually as well as collectively. The perspective taken is one…

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Abstract

Distils the key insights for management development from the four research papers, in this special issue taken individually as well as collectively. The perspective taken is one of strategy – for the industry practitioner or strategy/management consultant. The key insights that extend beyond the scope of individual research papers will be presented first, under the following themes: Lessons of brand/differentiation strategy; Managing a leading brand; A lesson from the case study; Strategy in a complex, turbulent and uncertain globalising environment. Key insights that are single research paper specific will be presented as follows: The story of Singapore Airlines and the Singapore Girl; Air wars in Asia: competitive and collaborative strategies and tactics in action; The Development of the airline industry from 1978 to 1998: a strategic global overview; Beyond Singapore Girl: grand and product/service differentiation strategies in the new millennium.

Details

Journal of Management Development, vol. 19 no. 6
Type: Research Article
ISSN: 0262-1711

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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.

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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. 32 no. 1
Type: Research Article
ISSN: 2059-6014

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Article
Publication date: 26 October 2020

Abdulla Hamad MA Fetais, Osama Sam Al-Kwifi, Zafar U Ahmed and Dang Khoa Tran

In 2017, Qatar Airways was recognized as the world's number-one airline by SKYTRAX World Airline Awards. These international awards have been described as “the Oscars of the…

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Abstract

Purpose

In 2017, Qatar Airways was recognized as the world's number-one airline by SKYTRAX World Airline Awards. These international awards have been described as “the Oscars of the aviation industry,” reflecting global recognition and excellence in conducting business activities at the international level. The main purpose of this case-based research is to explore and evaluate the internationalization strategies employed by Qatar Airways in becoming known as one of the best airlines in the world.

Design/methodology/approach

In accordance with the nature of this study, data were collected by interviewing managers from Qatar Airways as well as by exploiting supporting materials from secondary sources and airline-specific records. The recorded interviews were analyzed via content analysis to define airline strategies aimed at expanding globally and building a global brand.

Findings

The findings reveal that Qatar Airways has adopted effective strategies that have facilitated its aggressive global expansion and enhanced its global consumer recognition – mainly as a fast-growing network connecting important destinations that maintains a focused consumer orientation dedicated to providing an optimal travel experience. These strategies have been focused on building a superior consumer experience marked by exceptional comfort.

Practical implications

Qatar Airways' implementation of internationalization strategies in the airline industry represents an innovative approach marked by efficient operations and high-quality standards. Both international business managers and academics can learn from these strategies and their implications for enhancing airlines' global reputation and overall quality performance.

Originality/value

Unlike other research studies that investigate a wide range of firms across industries, this study focuses on exploring the factors that support the successful internationalization of a single firm, thus providing in-depth understanding of specific strategies to achieve global recognition. This study provides unique insights to analyze strategies and assess their practical relevance.

Details

Journal of Economic and Administrative Sciences, vol. 37 no. 3
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 5 August 2021

Gamze Orhan

Deregulation of domestic markets and the liberalization of international markets have dramatically changed air transportation. One of the important results of this change is the…

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Abstract

Purpose

Deregulation of domestic markets and the liberalization of international markets have dramatically changed air transportation. One of the important results of this change is the environmental effects of air transportation. This study aims to examine the implications of air transportation on environmental sustainability in the context of airline business strategies in liberalized and globalized air transport industry.

Design/methodology/approach

The paper discusses the relationship between liberalization, airline strategies and environmental sustainability of air transportation using the related literature. Then, to show some environmental impacts on the axis of the relationship discussed, emission rates for the aircraft landing and take-off phase were calculated on a global basis based on the aircraft traffic.

Findings

The discussion in the paper shows that the liberalization policies and the strategies of airlines supported by these policies, in essence, contradict the environmental sustainability of air transport. Considering the flight share projections of EUROCONTROL for different aircraft types on a global basis and the World Bank’s global flight traffic forecast for the years 2016 and 2025, it has been demonstrated that the number of aircraft departures will increase by 30%, whilst the number of aircraft emissions will increase by 41.5%.

Practical implications

Airlines are one of the main actors that will play a role in reducing the environmental impacts of air transportation. Therefore, this study is important in giving an idea to both policymakers and airline managers on how airline companies’ strategies should be shaped to realize both corporate sustainability and environmentally sustainable air transportation.

Originality/value

There are many studies in the literature regarding the environmental effects of air transport. However, there are not many studies linking environmental impacts with airline strategies that directly affect air transport demand. This study is different in that it gives environmental sustainability by associating it with its root causes.

Details

Aircraft Engineering and Aerospace Technology, vol. 93 no. 8
Type: Research Article
ISSN: 1748-8842

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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 stochastic…

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

Keywords

Open Access
Article
Publication date: 2 October 2019

Yazan Khalid Abed-Allah Migdadi

The purpose of this paper is to explore the effective taxonomies of airline green operations strategy.

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Abstract

Purpose

The purpose of this paper is to explore the effective taxonomies of airline green operations strategy.

Design/methodology/approach

To this end, a sample of 23 airlines from five regions (North America, South America, Europe, Asia and the Middle East) was surveyed. The annual sustainability reports of the surveyed airlines for the period 2013‒2016 were retrieved from the Global Reporting Initiatives website. K-means clustering analysis was used to generate taxonomic clusters of airline green operations strategy. A special data analysis technique, called rank analysis, was also adopted to identify the significant green actions and develop indicative models.

Findings

This study revealed that three effective taxonomies were adopted by airlines: a low-effect strategic pattern, a low-to-moderate effect strategic pattern and a high-effect strategic pattern. A different combination of green operation actions characterized each strategic pattern.

Originality/value

The research contribution of taxonomies of green operations strategy has so far been limited, country focused and concentrated on the manufacturing sector. This study reported the taxonomies and performed an in-depth analysis of the categories of effective actions taken to promote green performance. Moreover, this study developed indicative models for the relationship between categories of action and green performance for each strategic pattern, an action that has seldom been reported by previous studies of green operations strategies for airlines.

Details

Management of Environmental Quality: An International Journal, vol. 31 no. 1
Type: Research Article
ISSN: 1477-7835

Keywords

Abstract

Details

Insights and Research on the Study of Gender and Intersectionality in International Airline Cultures
Type: Book
ISBN: 978-1-78714-546-7

Article
Publication date: 4 October 2011

Sundaram Nataraja and Abdulrahman Al‐Aali

The purpose of this paper is to investigate the strategies and competitive advantages of Emirate Airlines that have led to exceptional performance while the overall airline

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Abstract

Purpose

The purpose of this paper is to investigate the strategies and competitive advantages of Emirate Airlines that have led to exceptional performance while the overall airline industry globally has faced multibillion‐dollar losses in 2009.

Design/methodology/approach

The authors' professional experience, extensive literature review, and personal communications with selected personnel of Emirate Airlines on the subject provided the foundation for this research.

Findings

As the global business environment becomes increasingly competitive, the airline industry has also had to respond to the current business scenario, while facing devastating falling demands, shattered consumer confidence, and collapsing yields. However, in 2009, Emirate Airlines reported phenomenal growth and astounding profits while their rivals faced agonizing losses. This paper explores and examines the competitive advantage of Emirate Airlines. The major finding is that the formulation and implementation of appropriate strategies has led to the exceptional performance, profitability, and success of Emirate Airlines.

Practical implications

The competitive strategies – such as operational strategies, generic strategies, intensive strategies, and diversification strategies – can be helpful for firms to gain a competitive advantage over their rivals. Also, the ability to leverage, innovate, and pioneer new ideas, as well as a visionary management team, are essential for exceptional performance of an organization.

Originality/value

The paper provides a model for strategically managing the performance of an aspiring firm, even though the entire industry is facing distressing circumstances.

Details

Competitiveness Review: An International Business Journal, vol. 21 no. 5
Type: Research Article
ISSN: 1059-5422

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