The Airline BusinessThe airline industry is currently faced with its longest and deepest crisis to date: many airlines are losing hundred of millions of US dollars, several have collapsed entirely and others have been rescued by their governments. This crisis has been precipitated by external shocks such as the attack on the Twin Towers in New York, the invasion of Iraq and the SARS epidemic. In addition, the effect of these events has been exacerbated by dynamic and potentially destabilizing internal developments. Comprehensive and thorough, this revealing book gives a detailed analysis of the crucial events and key developments which have impacted, and will continue to impact on the dynamics of the airline industry. Special attention is paid to:
Leading industry authority Rigas Doganis examines the future prospects for the changing airline business and assesses alternative policies which could help the sector adapt to the shifting marketplace. Ideal for students, researchers and professionals in the fields of economics and business, industry and transportation studies, this second edition of his definitive book brings the story right up to date. |
Contents
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Towards open skies | 27 |
22 Bilateralism under pressure | 31 |
23 Liberalisation and open markets 197891 | 32 |
24 Towards open skies from 1992 onwards | 38 |
65 The Europeans follow the Southwest model | 164 |
66 How great is the cost differential? | 170 |
67 A sustainable cost advantage | 178 |
68 Revenue advantages | 181 |
69 Charters the other lowcost model | 184 |
610 A passing phase or a model for the future? | 188 |
ecommerceairlinesco | 196 |
72 IT driving the airline business model | 197 |
25 The single European market | 45 |
Beyond open skies | 51 |
an anomaly in the global economy | 54 |
33 Towards clear skies | 59 |
34 The European Court changes the rules | 63 |
35 A TransAtlantic Common Aviation Area? | 66 |
Alliances a response to uncertainty or an economic necessity? | 73 |
42 Diversity of airline alliances | 78 |
43 The marketing benefits of large scale and scope | 86 |
44 Cost synergies and reductions | 91 |
45 Reducing competition | 95 |
46 Bypassing regulatory barriers | 99 |
47 Cementing alliances | 100 |
48 Are alliances anticompetitive? | 105 |
49 Controlling alliances | 110 |
410 A response to economic forces or to uncertainty? | 116 |
Labour is the key | 118 |
52 The unit cost of labour | 120 |
53 Productivity of labour | 124 |
54 Growing pressures to reduce the cost of labour | 128 |
55 Labour as a cost differentiator | 132 |
56 Strategies for reducing labour costs | 136 |
employees as shareholders | 141 |
58 The labour challenge | 144 |
The lowcost revolution | 147 |
62 The Southwest model | 150 |
63 The lowcost model catches on in the USA | 156 |
64 The impact of lowcost airlines in Europe | 159 |
73 The impact of ecommerce on marketing and distribution | 201 |
74 Drivers for change | 203 |
75 Risks and problems of ecommerce | 210 |
76 The role of global distribution systems | 214 |
77 Future developments and strategies | 217 |
78 Playing by the new rules customer relations management | 220 |
Stateowned airlines a dying species or a suitable case for treatment? | 223 |
82 Distressed state airline syndrome | 227 |
83 Preparing for privatisation | 234 |
84 Resolving privatisation issues | 240 |
85 State aid and the single European market | 245 |
86 The Olympic Airways case | 252 |
87 Saving the species | 255 |
Strategies for survival in the twentyfirst century | 258 |
92 Clarifying the corporate mission | 260 |
93 Repairing the network model | 263 |
94 Strategies for the lowcost sector | 269 |
95 Cost reduction as a longterm necessity | 272 |
96 Marketing focused on yield improvement | 274 |
97 Developing an alliance strategy | 278 |
98 An improved corporate culture | 281 |
99 Towards the virtual airline? | 282 |
910 The future shape of the airline industry | 287 |
Freedoms of the air | 292 |
Glossary of common air transport terms | 294 |
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302 | |