Competitive Dynamics Theory – Application to and Implications for the European Aviation Market

In view of the ever increasing competition and the expected consolidation phase in the European aviation market, airlines increasingly display highly aggressive competitive moves and countermoves. The resulting dynamic interaction extends over multiple markets, since airlines vie for passengers simultaneously on similar routes or in the same regions. By analyzing the European aviation industry from a multimarket competitive dynamics perspective, this article provides first insights concerning (1) the future development of the industry and (2) develops potential implications for airline management. Two main strategic approaches to outlive the competitive battle are identified and discussed.