Liberalization and Strategic Change in Air Transport: An Examination of Current and Future Variations in Tourist Traffic to and from Egypt Resulting from Policy Changes at EgyptAir

John F. O'Connell and David Warnock-Smith
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John F. O'Connell: Department of Air Transport, Building 115, Cranfield University, Cranfield, Bedfordshire MK43 0AL, UK
David Warnock-Smith: Division of Transport and Logistics and Tourism, Queensgate, Huddersfield, West Yorkshire HD1 3DH, UK

Tourism Economics, 2012, vol. 18, issue 4, 845-870

Abstract: The purpose of this study is to explore the impact of changes in EgyptAir's corporate strategy on its role and significance in relation to the Egyptian tourism sector. In-depth open interviews with top-level personnel were combined with a before–after time-series analysis of key market data in order to identify any early effects of EgyptAir's strategic changes on important international markets for inbound and outbound tourism. The study's major finding is that EgyptAir has taken some significant steps to target higher-yielding tourist passengers travelling from Egypt to Europe, Asia and North America and vice versa by fortifying its position at Cairo, improving its overall service offering and joining the world's largest strategic airline alliance (Star Alliance). Some early gains have been noted in these markets for EgyptAir, while at the same time an avoidance strategy has been noted in relation to lower-yield package holiday-makers who, despite forming a growing share of total demand, are already served by a highly competitive mix of foreign charter and scheduled airlines. Tourist numbers were found to increase after the strategic changes at EgyptAir. This increase was either facilitated directly by EgyptAir or indirectly as other carriers took advantage of the additional opportunities to serve markets that were dominated or neglected by EgyptAir prior to its air policy induced change of strategic direction. The general push towards liberalization in the wider Middle East region also partly led to these strategic changes.

Keywords: strategic change; tourism traffic; air policy; liberalization; EgyptAir; Egypt (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:18:y:2012:i:4:p:845-870

DOI: 10.5367/te.2012.0142

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