The Airline Business

Front Cover
Routledge, Nov 16, 2005 - Business & Economics - 320 pages

The 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:

  • the key challenges faced by the airlines such as continued liberalization and ‘open skies’
  • the impacts of global alliances
  • new low-cost and no-frills carriers
  • on-line selling and distribution
  • privatization
  • the impact of disasters.

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

Beyond the crisis trends and challenges
4
12 Crisis turns to disaster
8
13 Past trends
12
14 Airline challenges in the twentyfirst century
17
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
Bibliography
297
Index
302
Copyright

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