 Airline Strategies: An Empirical Analysis of Profitability and Market ShareMPRA Paper from University Library of Munich, Germany Abstract: This paper examines the relationship between airline profitability and market share in the context of contemporary strategic business theory. The paper provides a general overview of the business environment in which airlines operate, provides some of the organizational goals airlines pursue, and develops a situation assessment template for the airline industry. Theories of business management are then evaluated with respect to the nature of the airline industry before major elements of market share and profitability are examined. An empirical analysis based on a model of a domestic Australian route is used to draw some conclusions about the impact of different business strategies on airline profitability and market share. This is then broadened through the introduction of a simple network model to examine the potential impact of operating a network of services. The paper reaches the conclusion that the simplistic profitability-market share relationship is not applicable to the airline industry, given that there are a large number of other factors impacting on airline performance. Keywords: air transportation; business strategy; business economics; market share; profitability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:11914 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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