Here we go againâ€¦the Permanently Failing Organization: An application to the airline industry in Eastern Europe
This paper analyzes the performance of the Central and Eastern Europe airline industry through the lens of the â€œPermanently Failing Organizationâ€ (PFO) framework. Based on elite interviews from management in the three airlines but also from other organizations within the industry, it confirms the salience of key theoretical features of the PFO framework by providing evidence for the persistence of short-term decision making; ongoing contradictions between articulated strategy and its poor or non existent implementation and frequently assiduous intervention by governments that rather than fostering decisive decision-making served to do the opposite. These factors contributed to reinforcing deeply held beliefs in the management that they would survive despite the obvious problems they have faced. External stakeholders â€“ especially governments should reflect carefully on their role in fostering permanent failure.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 35 (2014)
Issue (Month): C ()
|Contact details of provider:|| Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dean F. Eitel, 2004. "The Dynamics of Chronic Failure: A Longitudinal Study," Public Money & Management, Taylor & Francis Journals, vol. 24(4), pages 243-250, August.
- Creel, Michael & Farell, Montserrat, 2001. "Economies of scale in the US airline industry after deregulation: a Fourier series approximation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(5), pages 321-336, November.
- Button, Kenneth, 2003. "Does the theory of the â€˜coreâ€™ explain why airlines fail to cover their long-run costs of capital?," Journal of Air Transport Management, Elsevier, vol. 9(1), pages 5-14.
- Ciliberto, Federico & Schenone, Carola, 2012.
"Bankruptcy and product-market competition: Evidence from the airline industry,"
International Journal of Industrial Organization,
Elsevier, vol. 30(6), pages 564-577.
- Ciliberto, Federico & Schenone, Carola, 2010. "Bankruptcy and Product-Market Competition: Evidence from the Airline Industry," MPRA Paper 24914, University Library of Munich, Germany.
- Romero-Hernandez, Manuel & Salgado, Hugo, 2005. "Economies of Density, Network Size and Spatial Scope in the European Airline Industry," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt9609m6hs, Institute of Transportation Studies, UC Berkeley.
- AfDB AfDB, . "African Statistical Yearbook 2009," African Statistical Yearbook, African Development Bank, number 58 edited by Koua Louis Kouakou.
- Wojahn, Oliver W., 2012. "Why does the airline industry over-invest?," Journal of Air Transport Management, Elsevier, vol. 19(C), pages 1-8.
- Barbot, Cristina & Costa, Ãlvaro & Sochirca, Elena, 2008. "Airlines performance in the new market context: A comparative productivity and efficiency analysis," Journal of Air Transport Management, Elsevier, vol. 14(5), pages 270-274.
- Dennis, Nigel, 2007. "End of the free lunch? The responses of traditional European airlines to the low-cost carrier threat," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 311-321.
- Beria, Paolo & Niemeier, Hans-Martin & FrÃ¶hlich, Karsten, 2011. "Alitalia â€“ The failure of a national carrier," Journal of Air Transport Management, Elsevier, vol. 17(4), pages 215-220.
- Pisarek Renata, 2009. "Air transport liberalisation in the European Union and its impact on development of the civil aviation sector in Poland," Comparative Economic Research, De Gruyter Open, vol. 12(3), pages 45-58, January.
- Dean F. Eitel, 2004. "The Dynamics of Chronic Failure: A Longitudinal Study," Public Money & Management, Chartered Institute of Public Finance and Accountancy, vol. 24(4), pages 243-250, 08.
- Douglas W. Caves & Laurits R. Christensen & Michael W. Tretheway, 1984. "Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 471-489, Winter.
- Bergamini, Elisabetta & Gitto, Simone & Mancuso, Paolo, 2010. "Restructuring the Alitalia business model," Journal of Air Transport Management, Elsevier, vol. 16(1), pages 16-19.
- Severin Borenstein, 2011. "Why Can't US Airlines Make Money?," American Economic Review, American Economic Association, vol. 101(3), pages 233-37, May.
When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:35:y:2014:i:c:p:1-11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.