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The difference between European and US airline management practice: the case of new-entrant airlines

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  • Gudmundsson, Sveinn Vidar

Abstract

The paper maps the difference between European and US airline management practice. The research was based on a questionnaire survey among airline managers of new-entrant airlines in the USA and Europe. The main findings were that European new-entrant carriers are trying to shed the inefficiencies caused by the heavily regulated pre-liberalization environment, mastering some of the tools and strategies necessary to survive in a liberalized market. Managers of US new-entrant carriers, on the other hand, show marked difference in their attitude towards their staff, a characteristic of non-unionized operating environment, but they are de-emphasizing hub and spoke operations and high overall market-share. The overall conclusion is that European carriers are learning how to cope with the new liberalized environment while the US airlines are well-seasoned, providing much to learn for their European counterparts.

Suggested Citation

  • Gudmundsson, Sveinn Vidar, 1997. "The difference between European and US airline management practice: the case of new-entrant airlines," Journal of Air Transport Management, Elsevier, vol. 3(2), pages 75-82.
    • Handle: RePEc:eee:jaitra:v:3:y:1997:i:2:p:75-82
    DOI: 10.1016/S0969-6997(97)00007-0
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    Cited by:

    1. Berrittella, Maria & La Franca, Luigi & Zito, Pietro, 2009. "An analytic hierarchy process for ranking operating costs of low cost and full service airlines," Journal of Air Transport Management, Elsevier, vol. 15(5), pages 249-255.
    2. Sveinn Vidar Gudmundsson, 2011. "Liberalization of Air Transport," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 14, Edward Elgar Publishing.

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