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Alliance strategy and the fall of Swissair: a comment

Listed author(s):
  • Knorr, Andreas
  • Arndt, Andreas
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    Swissair's rapid decline from being one of the industries’ most renowned carriers into bankruptcy was on the one hand the inevitable consequence of a fundamentally ill-conceived alliance strategy—rather than just a badly implemented one—that undermined Swissair's reputation as a high-quality carrier. On the other hand, the company's inability to coordinate effectively its own operations with those of Crossair, its regional subsidiary was another key factor in its demise. However, we hold that while yearlong mismanagement was indeed the driving force behind Swissair's demise, exogenous factors encouraged and compounded it. These include, first and foremost, the Swiss people's rejection of the European Economic Area Treaty in a 1992 referendum, Switzerland's protectionist aviation policy, and media failure.

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    Article provided by Elsevier in its journal Journal of Air Transport Management.

    Volume (Year): 10 (2004)
    Issue (Month): 2 ()
    Pages: 119-123

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    Handle: RePEc:eee:jaitra:v:10:y:2004:i:2:p:119-123
    DOI: 10.1016/j.jairtraman.2003.08.002
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    1. Chang, Yu-Chun & Williams, George, 2002. "European major airlines' strategic reactions to the Third Package," Transport Policy, Elsevier, vol. 9(2), pages 129-142, April.
    2. Luc Avonds & Francis Bossier & Albert Gilot & Bart Van den Cruyce & Filip Vanhorebeek, 2002. "Working Paper 03-02 - Evaluation des effets économiques de la faillite de la Sabena SA
      [Working Paper 03-02 - Evaluatie van de economische impact van het faillissement van Sabena N.V]
      ," Working Papers 0203, Federal Planning Bureau, Belgium.
    3. Suen, Wilma W, 2002. "Alliance strategy and the fall of Swissair," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 355-363.
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