ABSTRACT
The emergence of franchised route operations has been a significant development in the European aviation industry in recent years. This paper details the ways in which airlines are implementing this form of service provision. The main advantages and disadvantages of franchising for both airline franchisors and franchisees are identified. The paper demonstrates that this growing method of providing airline services differs from the forms of franchising activity that have developed in other service sectors. Furthermore, the paper examines definitional problems that have resulted from the adoption of the practice of franchising by the airline industry. The research includes a case study of British Airway’s entrance into franchise agreements.
