This paper focuses on technological and organizational levers as strategic determinants of innovation and transformation of airlines, considering the high rate of technological and organizational change (Barrett S., 2000) occurred in airlines market since 2004. The European airlines evolution will be especially examined on the basis of the hyper-competition phenomenon. European airlines industr...

U.S. airlines achieved a startling turnaround in 2009. Profits rose to $2.3 billion after a loss of $3.3 billion the year before. Also during 2009, the airlines collected $2.7 billion in baggage fees (U.S. Bureau of Transportation Statistics 2010). In other words, by charging separately for a service once associated with the price of a ticket, the airlines turned a potential loss into a profit....

A well-studied problem in the literature on airline revenue (or yield) management is the optimal allocation of seat inventory among fare classes given a demand distribution for each class. In practice, the seat allocation decisions of one airline affect the passenger demands for seats on other airlines. In this paper we examine the seat inventory control problem under both horizontal competitio...

W study the impact of operational performance on profitability in the context of the U.S. domestic airline industry. In addition, we investigate the impact of focus [Skinner, W. 1974. The focused factory. Harvard Bus. Rev. 52(3) 113–121] on profitability in services. We use quarterly data on all major carriers, available since the introduction of required reporting of service indicators to the ...

In today’s competitive arena, organizations must use all possible means to maximize growth and profitability by focusing on strategic marketing. Classic Airlines has an opportunity to alter the landscape of the airlines industry. In order to succeed, Classic Airlines must be able to correctly forecast market potential and future demand, by establishing long-term marketing objectives.

U.S. airlines achieved a startling turnaround in 2009. Profits rose to $2.3 billion after a loss of $3.3 billion the year before. Also during 2009, the airlines collected $2.7 billion in baggage fees (U.S. Bureau of Transportation Statistics 2010). In other words, by charging separately for a service once associated with the price of a ticket, the airlines turned a potential loss into a profit....

An international study of the airport choice factors for non-integrated cargo airlines By John Gardiner Recent forecasts predict that the current number of all-cargo aircraft worldwide will more than double over the next 20 years, spurred on by trends such as reduced passenger belly hold capacity on short and medium haul routes and a growing recognition of the profit potential of cargo by airli...

Based on a sample of 26 European passenger airlines, this study analyzes the development of airline business models over time. We used various distance measures to calculate concrete differentiation levels among these airlines between 2004 and 2012. The results indicate increasing similarity among these airlines, which lends support to the generally assumed convergence trend. The present paper ...

In the past decade, the Chinese airline industry experienced extraordinary growth in size and profitability. However, no quantitative study has investigated the performance of Chinese airlines in terms of productivity and cost competitiveness. This study investigates the leading Chinese airlines’ productivity, yield, cost competitiveness and input prices, and benchmarks them against major airli...

Operating lease of the aircraft gives the airlines ̄exibility in capacity management. However, airlines pay a risk premium to the leasing companies for bearing part of the risks. Therefore, the airlines face a trade-o€ between ̄exibility of capacity and higher costs. This paper develops a model for the airlines to determine their optimal mix of leased and owned capacity, taking into considerati...