New-entrant airlines’ life-cycle analysis: growth, decline and collapse

Sveinn Vidar Gudmundsson

Journal of Air Transport Management, 1998, vol. 4, issue 4, 217-228

Abstract: Many new-entrant carriers enjoyed fast growth and by the same token sudden failure, therefore raising interest in the characteristics of their life cycles. The article proposes a different approach to life-cycle analysis of airlines by integrating an ‘evolution path’ based on size classification with a ‘traditional life-cycle path’ that assumes two distinctive routes to failure. On the basis of a survey conducted among managers of new-entrant airlines in Europe and the USA, various factors were identified that showed significant differences between stages of evolution. The findings do support that new-entrant airlines have similar life-cycle characteristics as firms in general.

Keywords: Life-cycle analysis; New-entrant airlines; Organizational decline; Organizational collapse; Airline management (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:4:y:1998:i:4:p:217-228

DOI: 10.1016/S0969-6997(98)00013-1

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