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"Doganis, Rigas"
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The Airline Business
The airline industry is currently faced with its longest and deepest crisis to date: many airlines are losing hundred of millions of US dollars, several have collapsed entirely and others have been rescued by their governments. This crisis has been precipitated by external shocks such as the attack on the Twin Towers in New York, the invasion of Iraq and the SARS epidemic. In addition, the effect of these events has been exacerbated by dynamic and potentially destabilizing internal developments.
Comprehensive and thorough, this revealing book gives a detailed analysis of the crucial events and key developments which have impacted, and will continue to impact on the dynamics of the airline industry. Special attention is paid to:
the key challenges faced by the airlines such as continued liberalization and ‘open skies’
the impacts of global alliances
new low-cost and no-frills carriers
on-line selling and distribution
privatization
the impact of disasters.
Leading industry authority Rigas Doganis examines the future prospects for the changing airline business and assesses alternative policies which could help the sector adapt to the shifting marketplace. Ideal for students, researchers and professionals in the fields of economics and business, industry and transportation studies, this second edition of his definitive book brings the story right up to date.
1. Beyond the Crisis: Trends and Challenges 2. Towards \"Open Skies\" 3. Beyond \"Open Skies\" 4. Alliances: A response to uncertainty or an economic necessity? 5. Labour is the Key 6. The Low-Cost Revolution 7. e-commerce@airlines.co 8. State-owned Airlines: A dying species or a suitable case for treatment? 9. Strategies for Survival in the Twenty-First Century Appendices
eBook
The Airline Business
The second edition of Rigas Doganis' book brings the airline industry story up to date, exploring airline mergers and alliances, price wars, the impact of disasters and the future prospects for the industry as a whole
Book
Is there a long-haul low-cost gap?
In 2019, Norwegian Air operated by far the largest number of long-haul low-cost flights in the world. It operated across the Atlantic and from Europe to Asia. But because of over-rapid expansion and huge debts it was hemorrhaging cash badly even before the impact of the pandemic in 2020. So, there was no surprise when in January 2021 chief executive Jacob Schram announced that the carrier was abandoning long-haul and would focus on short-haul low-cost operations. The preceding months and years had already seen other European long-haul LCC exits, including Primera Air, Wow Air, XL Airways and Air France subsidiary Joon, while IAG has significantly pared back its Level operation.
Trade Publication Article
How to save distressed state airlines
The past decade has been the most profitable ever for the world's aviation industry. Yet most state-owned or state-controlled airlines have not shared in this prosperity. Surprisingly, they represent up to one-third of all international full-service carriers. While a few larger ones, such as Air China, Ethiopian and Singapore Airlines, have been profitable, the vast majority have been loss making or have generated only marginal returns well below the cost of capital. Airlines that have suffered extended loss-making periods include Gulf Air, Kenya Airways, Pakistan International Airlines, South African Airways (SAA), Saudia, Thai Airways and numerous others. Most state-owned or state-controlled airlines fail to prosper, even in good times, because they are in a distressed condition. This is a condition which, unless treated, can destroy state-owned airlines from inside. In most cases, the symptoms are clear.
Trade Publication Article
Saving Alitalia
If these are the policies for turning around a sickly state-owned airline, then governments should not impose conditions when trying to sell their airlines, which make it impossible for buyers to effectively implement such policies. Yet this is exactly what the Romano Prodi government has done. It imposed conditions on the sale which, on the one hand, made Alitalia a very unattractive buy and, on the other, if accepted by a buyer, would have endangered the airline's future.
Trade Publication Article
UK departure opens Pandora's box
Brexit is becoming a reality. The UK has launched the process of leaving the European Union. For air transport, uncertainty prevails. One of the successes of the EU has been the creation of the internal aviation market encompassing 28 member states plus Norway, Switzerland and Iceland. Air fares within Europe have dropped dramatically, traffic has grown steadily and hundreds of new direct air links have been launched, many from new or previously underserved airports. Common rules on safety, security and the environment have been agreed. British consumers and airlines have benefited enormously. Ryanair, an Irish airline, has by far its largest base at London Stansted. EU citizens or companies can set up and manage an airline in any of the member states, in addition to their own, provided more than 50% of ownership is in EU hands. The UK could become a member of the European Economic Area, as Norway and Iceland have done without being members of the EU.
Trade Publication Article
HANGING IN THE BALANCE
The USA, Canada and other countries have bankruptcy laws that allow companies on the verge of collapse to seek protection from creditors while they try to restructure their operations and finances. While not specifically aimed at airlines, such laws, particularly in North America, have enabled carriers such as Air Canada, Delta, United and US Airways to survive.
Trade Publication Article
Towards ‘open skies’
In January 1977 Jimmy Carter, a peanut farmer from Georgia, became President
of the United States. The Carter administration set off a chain of events which,
over the next 30 years, was to gradually transform international air transport from
a closeted and highly protected industry into a business that is more truly competitive and open. The transformation is not complete, but the process of change
should be largely finalised during the first decade of the twenty-first century. Any
attempt to understand the workings of the international airline business must start
with an appreciation of the changing regulatory environment within which it
operates.
Book Chapter