ABSTRACT
Disruptive innovation is likely to come both from within the airline industry and from outside of it. From within the industry, it started by the aggressive, less constrained, and well-financed Persian Gulf-based Super Connectors. From the low-cost carrier (LCC) sector it has originated with carriers such as Ryanair, AirAsia, Azul who are innovative, aggressive, and fast-moving. From outside the airline industry, information-rich technology organizations and unencumbered entrepreneurs see personalization, customer experience, and retailing as ripe areas for disruptive innovation through initiatives. These potential disrupters challenge the conventional wisdom of the airline industry and believe that the environment has changed sufficiently to transform dramatically the way the industry operates, despite the limited success of some initiatives. This chapter begins with a discussion on the key area of concern to customers followed by some examples of potential disrupters from within the airline industry, and the potential role of outside businesses with expertise in the use of new technologies and customer relationship management.
