Incumbent Inertia in Light of Disruptive Change in the Airline Industry: Causal Factors and Top Management Moderators

Incumbent Inertia in Light of Disruptive Change in the Airline Industry: Causal Factors and Top Management Moderators
Author: Oliver Viellechner
Publisher: ibidem-Verlag / ibidem Press
Total Pages: 356
Release: 2010-08-01
Genre: Business & Economics
ISBN: 3838261534

Oliver Viellechner addresses the response behavior of incumbent firms when facing discontinuous change by innovative business models. Almost always, this entails a problem of inertia, i.e. the sluggishness of incumbent response due to insecurity in deciding on an adequate response strategy. Viellechner investigates disruptive change in the European airline industry during the 1990s, when low-cost airlines severely challenged established carriers. By conducting four case studies, he identifies new causes of inertia and reveals the role of top management teams in improving incumbent firms' responsiveness. Viellechner's new book is relevant to both researchers and managers. It links concepts of strategy, organizational and psychological research and sheds light on the new competitive structure of an industry which has been repeatedly challenged by entrants and external shocks.

Airline Industry

Airline Industry
Author: Nawal K. Taneja
Publisher: Routledge
Total Pages: 322
Release: 2016-06-23
Genre: Business & Economics
ISBN: 131718307X

Many business sectors have been, and are being, forced to compete with new competitors-disrupters of some sort-who have found new ways to create and deliver new value for customers often through the use of technology that is coupled with a new underlying production or business model, and/or a broad array of partners, including, in some cases, customers themselves. Think about the disruption created by Apple by the introduction of the iPod and iTunes, and by Netflix within the entertainment sectors using partners within the ecosystem; think of Uber that didn’t build an app around the taxi business but rather built a mobility business around the app to improve customer experience. Airline Industry considers whether the airline industry is poised for disruptive innovations from inside or outside of the industry. Although airlines have a long history of continuous improvements and innovation, few of their innovations can be classified as disruptive innovations. The few disruptive innovations that did emerge were facilitated, for example by new technology (jet aircraft) and government policy (deregulation). Now there are new forces in play-customers who expect to receive products that are more personalized and experience-based throughout the entire journey, new customer interfaces (via social media), advanced information systems and analytics, financially powerful airlines based in emerging nations, and the rise of unencumbered entrepreneurs who think differently as well as platform-focused integrators.

Disruption Management

Disruption Management
Author: Gang Yu
Publisher: World Scientific
Total Pages: 313
Release: 2004
Genre: Business & Economics
ISBN: 9812560173

Addresses the latest research findings and application results on disruption management. Discusses disruption management for flight scheduling, machine scheduling, discrete production planning problems.

Up in the Air

Up in the Air
Author: Greg J. Bamber
Publisher: Cornell University Press
Total Pages: 237
Release: 2013-07-15
Genre: Business & Economics
ISBN: 0801457092

"And you thought the passengers were mad. Airline employees are fed up, too-with pay cuts, increased workloads and management's miserly ways, which leave workers to explain to often-enraged passengers why flying has become such a miserable experience."—New York Times, December 22, 2007When both an industry's workers and its customers report high and rising frustration with the way they are being treated, something is fundamentally wrong. In response to these conditions, many of the world's airlines have made ever-deeper cuts in services and their workforces. Is it too much to expect airlines, or any other enterprise, to provide a fair return to investors, high-quality reliable service to their customers, and good jobs for their employees?Measured against these three expectations, the airline industry is failing. In the first five years of the twenty-first century alone, U.S. airlines lost a total of $30 billion while shedding 100,000 jobs, forcing the remaining workers to give up over $15 billion in wages and benefits. Combined with plummeting employee morale, shortages of air traffic controllers, and increased congestion and flight delays, a total collapse of the industry may be coming. Is this state of affairs inevitable? Or is it possible to design a more sustainable, less volatile industry that better balances the objectives of customers, investors, employees, and the wider society? Does deregulation imply total abrogation of government's responsibility to oversee an industry showing the clear signs of deterioration and increasing risk of a pending crisis?Greg J. Bamber, Jody Hoffer Gittell, Thomas A. Kochan, and Andrew von Nordenflycht explore such questions in a well-informed and engaging way, using a mix of quantitative evidence and qualitative studies of airlines from North America, Asia, Australia, and Europe. Up in the Air provides clear and realistic strategies for achieving a better, more equitable balance among the interests of customers, employees, and shareholders. Specifically, the authors recommend that firms learn from the innovations of companies like Southwest and Continental Airlines in order to build a positive workplace culture that fosters coordination and commitment to high-quality service, labor relations policies that avoid long drawn-out conflicts in negotiating new agreements, and business strategies that can sustain investor, employee, and customer support through the ups and downs of business cycles.

Airline Deregulation and Laissez-Faire Mythology

Airline Deregulation and Laissez-Faire Mythology
Author: Paul S. Dempsey
Publisher: Praeger
Total Pages: 400
Release: 1992-09-08
Genre: Business & Economics
ISBN:

Airline deregulation is a failure, conclude Professors Dempsey and Goetz. They assault the conventional wisdom in this provocative book, finding that the Airline Deregulation Act of 1978, championed by a profound political movement which also advocated the deregulation of the bus, trucking, rail, and pipeline industries, failed to achieve the promises of its proponents. Only now is the full impact of deregulation being felt. Airline deregulation has resulted in unprecedented industry concentration, miserable service, a deterioration in labor-management relations, a narrower margin of safety, and higher prices for the consumer. This comprehensive book begins by exploring the strategy, tactics, and egos of the major airline robber barons, including Frank Lorenzo and Carl Icahn. In separate chapters, the strengths, weaknesses, and corporate cultures of each of the major airlines are evaluated. Part Two assesses the political, economic, and social justifications for New Deal regulation of aviation, and its deregulation in the late 1970s. Part Three then addresses the major consequences of deregulation in chapters on concentration, pricing, service, and safety, and Part Four advances a legislative agenda for solving the problems that have emerged. Professors Dempsey and Goetz advocate a middle course of responsible government supervision between the dead hand of regulation of the 1930s and the contemporary evil of market Darwinism. The book will be of particular interest to airline and airport industry executives, government officials, and students and scholars in public policy, economics, business, political science, and transportation.

Deregulation and Liberalisation of the Airline Industry

Deregulation and Liberalisation of the Airline Industry
Author: Dipendra Sinha
Publisher: Ashgate Publishing
Total Pages: 184
Release: 2001
Genre: Business & Economics
ISBN:

By giving long over-due detailed consideration to airline deregulation in countries other than the US, Dipendra Sinha makes a unique contribution to the literature on airline deregulation and transport economics.

The Limits of Expertise

The Limits of Expertise
Author: Key Dismukes
Publisher: Ashgate Publishing, Ltd.
Total Pages: 376
Release: 2007
Genre: Political Science
ISBN:

Why would highly skilled, well-trained pilots make errors that lead to accidents when they had safely completed many thousands of previous flights? The majority of all aviation accidents are attributed primarily to human error, but this is often misinterpreted as evidence of lack of skill, vigilance, or conscientiousness of the pilots. The Limits of Expertise is a fresh look at the causes of pilot error and aviation accidents, arguing that accidents can be understood only in the context of how the overall aviation system operates. The authors analyzed in great depth the 19 major U.S. airline accidents from 1991-2000 in which the National Transportation Safety Board (NTSB) found crew error to be a causal factor. Each accident is reviewed in a separate chapter that examines events and crew actions and explores the cognitive processes in play at each step. The approach is guided by extensive evidence from cognitive psychology that human skill and error are opposite sides of the same coin. The book examines the ways in which competing task demands, ambiguity and organizational pressures interact with cognitive processes to make all experts vulnerable to characteristic forms of error. The final chapter identifies themes cutting across the accidents, discusses the role of chance, criticizes simplistic concepts of causality of accidents, and suggests ways to reduce vulnerability to these catastrophes. The authors' complementary experience allowed a unique approach to the study: accident investigation with the NTSB, cognitive psychology research both in the lab and in the field, enormous first-hand experience of piloting, and application of aviation psychology in both civil and military operations. This combination allowed the authors to examine and explain the domain-specific aspects of aviation operations and to extend advances in basic research in cognition to complex issues of human performance in the real world. Although The Limits of Expertise is directed to aviation operations, the implications are clear for understanding the decision processes, skilled performance and errors of professionals in many domains, including medicine.