The global airline industry, facing significant changes and discontinuity is prompted and forced to deal with a "new normal." Who would have imagined a few years ago that: - a significant percentage of consumers in the US now prefer to fly low-cost airlines instead of full-service airlines because they perceive the product to be better, - airlines would generate up to a third of their total income from non-ticket revenue, - many low-cost airlines would add complexity to their original simple business models through the development of code-share agreements, the use of global distribution systems, and travel agents to distribute their seats, - Jetstar, a low-cost subsidiary of Qantas, would grow faster and be more profitable than its parent, - a survey carried out by Ryanair would show that 42 percent of passengers would be willing to stand on short (one hour) flights if they could pay 50 percent less than seated passengers, - passengers could pay as little as US$2,000 for a transatlantic Business Class ticket on top-brand airlines, - Lufthansa would have ownership in airlines based in Austria, Belgium, Italy, Switzerland, Turkey, the UK, and the US, and that it would continue to pursue equity ownership in airlines based in Poland and Scandinavia, or - the Japanese and Canadian governments would struggle to find different ways to bail out their heretofore flag carriers? To deal with this upcoming "new normal", airlines have to go beyond their short-term circumstantial strategies - they need strategic renewal of their ageing business model. In this candidly-written book, Nawal Taneja explains what will separate the winners from the losers. He maintains the leaders will be the airlines that: (1) exploit this crisis-driven change to their best advantage, (2) learn to work around the airline-inherent constraints that prevent them from running their businesses just like other businesses, (3) learn from successes and failures of other global enterprises, (4) sharpen their business intelligence, analytics, and strategic agility, and (5) proactively explore the "pockets of growth" in this emerging-markets century. To help airline executives become informed of new competitive games, the author analyzes numerous business sectors such as auto, hospitality, retail, technology, and entertainment. For example, relevant lessons can be learned from the strategic mistakes made by the US automakers. Likewise, emergent and compelling insights can be gained in superior customer experience from Ritz Carlton and Zappos, and in value-creating innovation from Cirque du Soleil and Zipcar. The book also features a multitiude of forewords from airlines and related businesses to provide readers with multiple perspectives on the changing landscape in the global airline industry. Nawal Taneja is a career analyst of the global airline industry with wide-ranging experience in the aviation industry, academia, and public policy. Encouraged by industry executives, he has written five other books for practitioners in the global airline industry, including FASTEN YOUR SEATBELT: The Passenger is Flying the Plane and Flying Ahead of the Airplane.
Designing Future-Oriented Airline Businesses is the eighth Ashgate book by Nawal K. Taneja to address the ongoing challenges and opportunities facing all generations of airlines. Firstly, it challenges and encourages airline managements to take a deeper dive into new ways of doing business. Secondly, it provides a framework for identifying and developing strategies and capabilities, as well as executing them efficiently and effectively, to change the focus from cost reduction to revenue enhancement and from competitive advantage to comparative advantage. Based on the author’s own extensive experience and ongoing work in the global airline industry, as well as through a synthesis of leading business practices both inside and outside of the industry, Designing Future-Oriented Airline Businesses sets out to demystify numerous concepts being discussed within the airline industry and to facilitate managements to identify and articulate the boundaries of their business models. It provides material from which managements can set about answering the key questions, especially with respect to strategies, capabilities and execution, and pursue an effective redesign of their business. As with the author’s previous books, the primary audience is senior-level practitioners of differing generations of airlines worldwide as well as related businesses. The material presented continues to be at a pragmatic level, not an academic exercise, to lead managements to ask themselves and their teams some critical thought-provoking questions.
Nawal K. Taneja explores and explains the game-changing opportunities presented to the industry by new-generation information and technology. He shows how information and technology can now drive, not just enable, an airline's strategy to become truly customer-centric at a personalized level, while at the same time enabling the operator to reduce costs, enhance revenues, reduce risks and become much more flexible and agile by better managing complexity.
Airlines willing to develop insight from foresight relating to the expected ‘step phase changes’ will eventually improve their margins. However, the backward-looking airline, managed using old strategic levers and short-term metrics, will cease to exist, merge, shrink, become more dependent on government support, or become irrelevant. ‘Management innovations’ are not going to deliver the required improvements; innovation within management is essential for airlines' survival. In Flying Ahead of the Airplane, Nawal Taneja analyzes global changes and thought-provoking scenarios to help airline executives adjust and adapt to the chaotic world. Drawing on his experience of real airline situations worldwide, the author concludes that there is a gulf between what executives are doing now and what they need to do to stay ahead of the curve. To close this gap, the author suggests that airline executives focus on just three relevant initiatives: a) aligning business and technology strategies, b) redesigning organization structures to centralize the role of the scheduling function, and c) developing relevant brands that integrate social networking technology. To support this third initiative, the book provides insights on branding from 20 fascinating non-aviation case studies from around the world. Flying Ahead of the Airplane will assist practitioners in airlines of every size to integrate future trends into their mainstream thinking and launch flexible business models to manage risk and compete effectively in the ‘flattening world’.
Designing and Executing Strategy in Aviation Management is designed to provide an intensely practical guide to this critically important topic. Comprehensive in coverage and easy-to-read in style, it allows both professionals and students to understand the principles and practicalities of crafting and executing business strategies with an aviation context. The result is a comprehensive and multifaceted teaching/learning package, which includes applied case studies on a wide range of airlines and aviation businesses, setting out how these organizations deal with strategy formulation and implementation in critical areas. Topics covered include: corporate strategy, generic strategy, competitive strategy, internal and external environment assessment, mergers, alliances, safety and security. Written directly for both aviation professionals and student courses in aviation strategy, aviation management and aviation operations, it will also be of great interest to aviation professionals in a variety of different fields, including airlines, corporate aviation, consultancy, etc., as well as academics within the field of aviation and those within the field of strategy and management science.
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