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Sourcing strategies for disruption recovery: Empirical evidence from the US airline industry

Author

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  • Wang, Kun
  • Wan, Yulai
  • Jiang, Changmin
  • Gu, Hongyi

Abstract

We use data from the US airline industry to test the roles of long-term commitment and supplier diversification in counteracting disruption risk. A network airline may delegate a route to its own subsidiary regional airline (long-term commitment), or multiple regional airlines (supplier diversification). We find that the usage of both strategies is positively associated with external disruption risks. The chance of sourcing from a single subsidiary regional airline is higher when such risk is high. Once a network airline delegates a route to its subsidiary regional airline, supplier diversification no longer generates much extra value in dealing with disruption risk.

Suggested Citation

  • Wang, Kun & Wan, Yulai & Jiang, Changmin & Gu, Hongyi, 2025. "Sourcing strategies for disruption recovery: Empirical evidence from the US airline industry," Transport Policy, Elsevier, vol. 167(C), pages 145-156.
    • Handle: RePEc:eee:trapol:v:167:y:2025:i:c:p:145-156
    DOI: 10.1016/j.tranpol.2025.03.021
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