Competitive strategies in the world airline industry

Jim Hamill

European Management Journal, 1993, vol. 11, issue 3, 332-341

Abstract: Jim Hamill examines the strategic response of leading international carriers to the competitive challenges currently facing the world airline industry. Three main strategies are being followed including the expansion of global route networks; customer/marketing-orientated strategies aimed at improving service quality and securing brand loyalty; and cost control strategies. Maintaining a distinctive competitive advantage in any of these areas is becoming more difficult as similar strategies are being followed by all leading airlines. A major consolidation of the airline industry, both globally and in Europe, is already underway -- a trend which will continue for the remainder of this decade. As a consequence, the sector will become increasingly dominated by a handful of global mega-carriers. In Europe, airline deregulation is unlikely to lead to more open competition or reduced air fares.

Date: 1993
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