ABSTRACT
This chapter describes the ‘rational approach’ to strategic management - dominant despite being unfashionable - as a multi-stage process comprising analysis, formulation of alternatives, choice, implementation, feedback, and control. The growth option could involve growing with markets already served, or growing into existing and/or new markets. Growing with the air transport markets in which an airline operates is generally a viable option given that most are continuing to expand in terms of both traffic and, somewhat less consistently in some parts of the world than others, revenue. The essence of what is generally referred to as ‘intensive growth’ is exploitation of an airline’s existing products and/or markets. In 1996, British Airways was the world’s most profitable airline. The same year, it launched a $1.5 billion cost-cutting programme which within 12 months was contributing to mounting unrest amongst staff.
