European Airline Industry, 1993 – 2009: Flying into Turbulence (A)

Case Solution

Venkat Subramanian, Samuel Tsang
University of Hong Kong ()

This case illustrates the evolving structure of the aerospace industry in Europe and the industry’s competitive factors. This case first describes the context of the aviation industry before deregulation. Subsequently, the development of the branch after deregulation is examined. We examine competition between established suppliers and new market entrants, as well as the entry of low-cost airlines into the industry fabric. The case illustrates the different reactions of established companies to structural change in the industry and the development of new customer segments. The case also illustrates the different competitive requirements in the course of structural changes in the period from 1993 to 2000 and beyond, as well as the decisions of established firms and market participants as the basis for changes in competition in the industry. industry. The competitive positioning of established companies and new market entrants, as well as changes in positioning, are also examined. Finally, the case also illustrates the possible new business models and their connection with the competitive positioning and structure of the industry. This case is situated in the years 1993 to 2000, when the deregulation of the industry took place, which caused considerable and essential changes in the structure of the industry.

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