Strategic Response of European Airlines to Market Dynamics: A Comparative Analysis

Ugo Arrigo, Massimo Beccarello and Giacomo Di Foggia
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Ugo Arrigo: Department of Business and Law, University of Milano-Bicocca, 20126 Milan, Italy
Massimo Beccarello: Department of Business and Law, University of Milano-Bicocca, 20126 Milan, Italy

Administrative Sciences, 2023, vol. 13, issue 12, 1-14

Abstract: The airline market is constantly evolving and requires managers to adopt strategies to meet the changing demands and organizational requirements of the sector. As a result of its liberalization, the European market has transformed from a set of national protected sectors to a single sector. Although the market has grown over the last two decades, the industry has faced difficulties due to various economic, safety, environmental, and health issues, which have recently emerged. This study analyzes the airlines’ strategic responses to increased competition from the turn of the century to 2019, excluding the pandemic period, to focus on market dynamics driven by European competition policy. A five-pillar strategic framework highlighting common strategies and divergences between major European network carriers is outlined through a multi-case analysis of major European markets. The sample includes France, Germany, Italy, and Spain. Results have managerial implications that highlight the importance of strategic adaptability in an industry landscape that continues to evolve. Managerial implications fall into the following three categories: strategic positioning, cost optimization, and business diversification.

Keywords: transport management; transport policy; strategy; liberalization; aviation; airline management (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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