9780754641933

Simpli-Flying: Optimizing the Airline Business Model

by
  • ISBN13:

    9780754641933

  • ISBN10:

    0754641937

  • Edition: 1st
  • Format: Hardcover
  • Copyright: 2004-04-28
  • Publisher: Ashgate (AGH)

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Summary

The airline industry is in a state of radical restructuring as its markets and key stakeholders adjust to the new aviation realities. Written by an experienced airline business strategist and international in scope, this wide-ranging book identifies challenges and problems, presents comprehensive analyses and suggests solutions.

Table of Contents

List of Figures xi
List of Tables xiii
Foreword by Kanok Abhiradee, President, Thai Airways International Public Company Limited xv
Foreword by Captain John Darrah, President, Allied Pilots Association xvii
Foreword by Tony Fernandes, Chief Executive Officer, AirAsia xix
Foreword by Robert Fornaro, President and C.O.O., AirTran Airways xxiii
Foreword by Ralph Norris, Managing Director and Chief Executive, Air New Zealand xxv
Preface xxvii
Acknowledgements xxxiii
List of Abbreviations xxxv
1. Adapt Decisively to the Changing Aviation Marketplace 1(28)
Face Fundamental and Enduring Change
2(13)
Businesses with Different Models
2(4)
Customers: Smart and now in Charge
6(3)
Distribution Channels and Systems
9(3)
Ongoing Market Instability
12(3)
Identify Obstacles to Change
15(9)
Pervasive Government Intervention
15(1)
Conventional Thinking in Unconventional Times
16(5)
Burdened by Past Decisions
21(3)
Focus on High-Priority Areas to Change
24(3)
Cost Structure
24(2)
Revenue Opportunities
26(1)
Conclusions
27(2)
2. Select Competitive and Stakeholder-Aligned Business Models 29(44)
Historical Perspective
30(4)
Rationality and Sustainability
34(3)
Value Proposition
35(1)
Consumer Behavior
35(1)
Integrated Working Relationship with Governments and Airports
35(1)
Location
36(1)
Past Burdens
36(1)
Change Management
36(1)
Flexibility
36(1)
Legacy Carriers: Potential Variations
37(10)
Corporate Diversification
37(1)
Alliances
38(2)
Low Cost Subsidiaries
40(1)
Network and Size
41(3)
Hybrid Business Model
44(1)
Technology
44(2)
Fleet and Process Simplification
46(1)
New Paradigm Airlines: Potential Variations
47(6)
Absolute Lowest Cost
47(3)
Traditional Types
50(1)
Regional Jets
50(1)
Intercontinental Operations
51(1)
Network Design and Development
52(1)
Examples of Variations in Business Models of Legacy Carriers
53(5)
Aer Lingus
53(1)
AirTran
54(1)
America West
55(1)
Alaska Airlines
55(1)
Flybe
56(1)
TACA
57(1)
Thai Airways
58(1)
Alignment with Key Stakeholders
58(12)
Government
59(4)
Infrastructure
63(3)
Organized Labor
66(3)
Management
69(1)
Conclusions
70(3)
3. Create Value with a Brand 73(38)
Align Products, Core Competencies, and Customer Base
74(5)
Customer Loyalty
79(5)
Where to Focus: Products, or Brands, or Reputation?
84(3)
Mistakes and Problems in Branding
87(2)
Critical Success Factors in Branding
89(6)
Connecting with the Customer
89(3)
Authenticity, Distinctiveness, and Consistency
92(2)
Employee Buy-In
94(1)
Brand Development
95(12)
Products, or Companies, or Employees
95(4)
Customer Relationship Management
99(8)
Conclusions
107(4)
4. Grasp Insights from other Businesses 111(32)
Some Who Succeeded
111(14)
Wal-Mart: Low prices every day
111(2)
Target: Reinventing the discount store concept
113(3)
Nike: Even successful companies can lose customer focus
116(1)
Dell Computers: Selling directly to customers
117(1)
Shell International: Being well positioned to react to surprises
118(3)
Harrah's Entertainment: Building profitable customer relations
121(3)
The Warehouse: Doing more with fewer resources
124(1)
Some Who Stumbled
125(4)
Kmart: Inconsistent and ill-fated strategy
125(2)
AOL: Failed synergies
127(2)
Some Who Transformed Swiftly
129(5)
Unilever: A dramatic turnaround of a business unit
129(3)
Nissan: Restructuring through cross functional teams
132(2)
Some Who Created a New Market
134(2)
DoCoMo: How to create a new market and become a worldwide force
134(2)
Some Who Moved Steadily Forward
136(3)
Toyota: Reaching its goals by evolution, not revolution
136(3)
Conclusions
139(4)
5. Transform Supplier Relationships 143(18)
Risk Management
143(4)
Outsourcing Decision Criteria
147(5)
Relationship Management
152(2)
What Happened Outside the Industry?
154(2)
Transition Considerations
156(2)
Conclusions
158(3)
6. Prepare for Major Transformation: The Unthinkable is Now Thinkable 161(38)
Triumph of the New Wave
163(11)
Scenario
163(1)
Contributing Factors
163(9)
Implications
172(2)
Survival of the Late Adapters
174(12)
Scenario
174(1)
Contributing Factors
175(7)
Implications
182(4)
The Connectivity Paradigm From Surfing to Flying
186(5)
Scenario
186(1)
Contributing Factors
187(2)
Implications
189(2)
Emerging Markets-The New Frontier
191(5)
Scenario
191(1)
Contributing Factors
191(4)
Implications
195(1)
Conclusions
196(3)
7. Final Thoughts 199(14)
Financial Realities
199(1)
Marketplace Realities
200(1)
Financial Structures
201(1)
Current Stakeholders' Roles in Preventing Solutions
202(2)
Capacity
202(1)
Strategic Alliances
203(1)
Focus on the Right Things
204(3)
Opportunities Continue
207(2)
Segmentation
209(3)
Turning the Page....
212(1)
Index 213(6)
About the Author 219

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