New Study analyses state of “Permanent Failure” at Airlines

A new study entitled: Here we go again…the Permanently Failing Organization: An application to the airline industry in Eastern Europe by myself and two colleagues, Dr. Adel Nemeth and Prof. Dr. Hans-Martin Niemeier will be published in the leading research journal – Journal of Air Transport Management in 2014. We examine why privately owned airlines perform so […]

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The End of “Low Cost” – convergence in LCC and “Full Service” models

The ongoing fight between passenger airlines that describe themselves as “full service” or “network” carriers (FSC) and those self-described as “low cost” (LCC) is taking an interesting turn. First, recent evidence suggests that ticket prices of LCCs may even be higher than some FSCs. Fly Dubai and Air Arabia, two self-styled LCCs were charging higher […]

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IATA – Past, Present and Future

  You will no doubt have seen at a travel agency or on board a plane the ubiquitous IATA logo. The International Air Transport Association (commonly known as IATA) has played a pivotal role in passenger aviation and air transport more broadly since its inception in April 1945. Both its supporters and detractors will agree […]

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Different Airline Species

In previous posts, I have argued that one of the single biggest weaknesses of passenger airline executives is that they tend to pursue competitive parity rather than seek out differentiated positioning. I have also suggested that the dominance of LCCs such as Ryanair have a tendency to drive a race to the bottom. By snatching […]

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The Low-Cost disease spreads further: Lufthansa to operate Germanwings flights within Europe

  In an effort to cut losses at Lufthansa Group’s passenger airlines division, the company announced that it will utilize its LCC subsidiary Germanwings to operate flights out of its secondary German airports (i.e not Frankurt or Munich). As with other LCCs, Germanwings has shaved cost to the bone in an effort to remain competitive. […]

Read More The Low-Cost disease spreads further: Lufthansa to operate Germanwings flights within Europe

Extending Strategies for Low-Cost Carriers: South West Airlines and Air Asia.

Imagine you are the owner/CEO of a low-cost carrier (LCC) and you have grown your business extensively where you have achieved a level of market saturation where options for growth based on your existing business model are limited. This was the challenge facing the world’s biggest LCC, SouthWest Airlines in the US. A similar problem […]

Read More Extending Strategies for Low-Cost Carriers: South West Airlines and Air Asia.