ABSTRACT
This chapter explains the disruption in the airline industry and it relates to disrupting the business in general and managing it differently. It describes some experience with disruptive change. Few of airline innovations can be classified as disruptive innovations. Developments such as the inter-line system, multi-class cabins and fares to appeal to different segments, and pick-up and delivery of bags considered as continuous improvements. The chapter presents examples of innovations such as: the long-range aircraft, computer reservation systems, satellite communications and lie-flat seats in intercontinental markets and hub-and-spoke systems. The introduction of low-cost, low-fare services by new airlines disrupted the airline business of incumbent airlines. The global growth of low-cost carriers (LCCs) accelerates the fundamental shift in the entire industry. Despite the ongoing improvements, evolutionary innovations, and disruptive innovations, air travel within the commercial air sector continues to be mass produced and mass delivered for the bulk of travelers, and traveler frustration at various touch points has been increasing.
