chapter  9
15 Pages

Airline business strategy

ByGui Lohmann, Bojana Spasojevic

This chapter provides some generic strategies, and focuses on airline differentiation strategies and niche products, mainly charter and leisure carriers. It tackles growth strategies, and considers different strategic growth methods, including organic growth, mergers and acquisitions, industry cooperation and franchising. The chapter discusses each of these strategic methods and its implications for the airline industry. Airlines are notorious for providing lower returns on investment when compared with other corporations. Low cost carrier started with Southwest Airlines in the US in the late 1970s, then proliferated into Europe in the 1990s and to most countries in the world in the 2000s. Among the various airline business models, one that has operated in a much less regulated environment is that of charter, non-scheduled services. Strategic business decisions affect a wide range of managerial and operational areas of any airline.