ABSTRACT
By Virtual Airlines, we do not mean a virtual reality game. We mean workgroups that are geographically distributed, yet work for a common goal. By this definition, we would include multi-national conglomerates like the Airbus Industrie, or the multi-airline alliances based on codesharing or a linked frequent flyer program. Therefore, we see virtual airlines as organizations that have the minimum core infrastructure, yet they are able to look and work like a conventional airline. Sometimes, new "low-cost" airlines start as a virtual organization-lease airplanes, outsource maintenance, contract employees, and use electronic ticketingthey do not own any airplanes or hangars, nor do they employ any flight, maintenance, or ground crew. The core management team simply manages the different functional groups of the company as interdependent profit centers. However, as the company builds revenue and market share, its organization tends to resemble a conventional airline-increased number of employees and decreased number of contractors.
