ABSTRACT
Airlines walk a tightrope strung between being perceived by society as ‘mean and hard’ (i.e. economically focussed) or by economists as ‘soft’ (i.e. too compassionately focussed). Governments favour airlines taking the latter compassionate approach since it absorbs some of the nation’s social responsibilities and costs; but economically viable airlines need to consider commercial pressures. To be perceived as too ‘hard’ could frighten customers, suppliers and governments which authorise the ‘licence to operate’; to be seen as too ‘soft’ could frighten investors. Maintaining economic and social sustainability requires airlines to make honest profits by considering as many of the internal and external stakeholders as possible without alienating those who feel aggrieved by its decisions (see Chapter 7).
