The Impact of Firm Size and Business Strategy on Response to Service Disruptions: Evidence From the U.S. Domestic Airline Industry

2020 ◽  
pp. 1-14
Author(s):  
Mahour Parast ◽  
Davood Golmohammadi
Keyword(s):  
Firm Size ◽  
Airline Industry ◽  
Business Strategy ◽  
Domestic Airline ◽  
The Impact ◽  
The U.S

Strategic Responses to Deregulation and Their Performance Implications in the U.S. Airline Industry

2006 ◽  
Vol 8 (2) ◽  
pp. 1-37 ◽  
Author(s):  
Irene Goll ◽  
Nancy Brown Johnson ◽  
Abdul A. Rasheed
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Airline Industry ◽  
Business Strategy ◽  
Low Cost ◽  
Strategic Choices ◽  
Strategic Responses ◽  
Time Series Regression ◽  
Cross Sectional ◽  
The U.S

This study examines the relationships between deregulation, business strategy (low cost, differentiation, and scope), size, and firm performance in the U.S. airline industry based on archival data for the Major, National, and Large Regional air carriers in the U.S. from 1972 to 1995. Cross-sectional time series regression analysis shows that deregulation had a significant impact on the strategic choices made by airlines. Results also support a significant relationship between business strategy and firm performance. Further, the study found that firm size moderates the environment-business strategy relationship and the business strategy-firm performance relationship, thereby supporting the salience of firm size as a contingency variable in strategy studies.

scholarly journals Political Economy of ASEAN Open Skies Policy: Business Preferences, Competition and Commitment to Economic Integration

2020 ◽  
Vol 2 (1) ◽  
pp. 44-61
Author(s):  
Prayoga Permana ◽  
Herman W. Hoen ◽  
Ronald L. Holzhacker
Keyword(s):  
Economic Integration ◽  
Airline Industry ◽  
Business Strategy ◽  
Jel Classification ◽  
Structured Interviews ◽  
Government Officials ◽  
Airline Competition ◽  
Domestic Airlines ◽  
Domestic Airline ◽  
Privately Owned

Despite significant growth of the domestic airline industry, Indonesia was hesitant to ratify the ASEAN Open Skies Policy (OSP) until 2016. One of the recent findings exposed the increasing concern over foreign–domestic airline competition with too little attention in exploring airline aspirations and the potential interplay between the airline preferences and the state interest. This study empirically investigates the dynamics of domestic resistance to the implementation of OSP, and to what extent the interplay of Indonesian airlines’ business preferences, ASEAN contexts and state interests have contributed to the OSP ratification postponement. Taking some lessons from the OSP ratification, we argue that the efforts towards advancing ASEAN economic integration through the open skies are contested domestically when business preferences showed mixed reactions. There has been little agreement on how the OSP could benefit the domestic airlines following their own business strategy. In the meantime, state principles indicated certain priorities for domestic interests, while ASEAN contexts allowed a member state to practice a negotiated move. The study was conducted using a qualitative method, with semi-structured interviews involving three Indonesian airlines (state and privately owned, full service and budget airlines), government officials, a civil society element and the Indonesian national air carriers association. JEL Classification: F0, F5

The U.S. Airline Industry in 1995

2017 ◽  
pp. 1-38
Author(s):  
James D. Dana ◽  
David A. Schmitt
Keyword(s):  
Airline Industry ◽  
Industry Structure ◽  
Industry Analysis ◽  
Hub And Spoke ◽  
Cost And Benefit ◽  
Basic Industry ◽  
And Performance ◽  
Point To Point ◽  
Domestic Airline ◽  
The U.S

Provides an overview of the domestic airline industry. Offers details on industry structure and performance necessary for basic industry analysis (or five forces analysis). Also emphasizes cost and benefit drivers, especially hub-and-spoke vs. point-to-point service and sources of differentiation.

scholarly journals Determinants of Profitability and Recovery from System-Wide Shocks: The Case of the Airline Industry

2012 ◽  
Vol 2 (1) ◽  
pp. 1 ◽  
Author(s):  
Benny Mantin ◽  
Jen-Hung Edward Wang
Keyword(s):  
Airline Industry ◽  
Operations Strategy ◽  
Security Measures ◽  
Quarterly Data ◽  
Domestic Airline ◽  
The U.S

This paper examines the determinants of profitability in the U.S. domestic airline industry, segmented into: operations strategy, productivity, and service measures, using quarterly data between 1995 and 2007. The analysis is performed separately on data prior and post 9/11 attack, revealing, among others, that after 9/11 the profitability of full-service carriers is improving faster than that of focused carriers, and that passengers are more forgivable to service glitches after 9/11 or possibly are associating lack of service with the intensified security measures imposed after 9/11. Focusing the analysis on determinants of consumers’ complaints we find further support for these arguments.

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