What is the Best Airline Business Model in a Bad Economy? The current economic crisis has presented serious challenges to businesses of all kinds, but the airline industry has always been particularly subject to volatile changes in an economic downturn. The reasons for this are varied and subject to circumstances, but fuel costs, consumer demands, maintenance costs and security concerns can all play a part. Larger carriers, with established infrastructures and high labor costs, have traditionally had a more difficult time adapting to changing economic circumstances. History has a number of examples, such as Pan Am, of established airlines falling by the wayside due to an inability to adapt. Today there are essentially three types of...The end:
....., and are willing to give up a certain level of comfort and convenience in order to get them. The most successful airlines are the ones that achieve the most satisfying balance between economy, reliability and comfort, with economy being the most important single element. References Dostaler, I. and Flouris, T. Business Strategy and Competition for the Future in the Airline Industry. Aerlines Magazine ezine edition (issue 28): 1-3. Booz, Allen and Hamilton (no date). Airline ‘No Man’s Land.’ The crisis faced by traditional hub carriers and how to escape it. Available at: www.boozallen.com/media/file/Airline_No_Mans_Land2.pdf Porter, M.E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.