The International Airline Industry: Trends, Issues, and Challenges.

1990 ◽  
Vol 19 (3) ◽  
pp. 387
Author(s):  
Michael D. Irwin ◽  
Nawal K. Taneja
Author(s):  
Gerben de Jong ◽  
Christiaan Behrens ◽  
Hester van Herk ◽  
Erik Verhoef

2012 ◽  
Vol 1 (2) ◽  
pp. 211-221 ◽  
Author(s):  
Herwina Rosnan ◽  
Razmah Mahmod

Malaysia Airlines (MAS) is the Malaysian national air carrier. It was incorporated during the early days of air travel in 1937. From a humble beginning, MAS has developed into a renowned international airline with award-winning products and services. It managed to achieve cost efficiency and operates slightly below industry average. MAS has gone through several changes in its management over the years and still survives. However, being a national air carrier and government owned, MAS has several constraints in its operation where it has to balance between political and social obligations, and at the same time consider its commercial interest. Thus, some of the decisions on air service destinations, pricing structure and other business factors cannot be made purely based on commercial ground. This had affected the profitability of the airline. Furthermore, the global airline industry was facing turmoil since 11 September 2001 as a result of significant decline in air travel demand as well as the increase in fuel cost. Without exception, MAS was also badly hit and had recorded a substantial RM 1.3 billion loss in 2005. The bad market environment at that time continues to hit MAS hard. Hence, it was inevitable for the airline to make drastic changes in order to respond to the volatile business environment. Therefore, a real and radical business turnaround plan was imperative for MAS. Introduced in 2006, the Business Turnaround Plan (BTP) managed to bring MAS out of its financial crisis within two years of its implementation. This case highlights the winning strategies and action plans implemented by MAS in the BTP that had successfully turnaround this national air carrier from a deep financial crisis. As a result, from a substantial loss of RM 1.3 billion in 2005, MAS achieved a record-breaking profit of RM 610 million in 2007.


Subject Prospects for government intervention in the airline industry. Significance The leading Gulf airlines -- Emirates, Qatar and Etihad -- have risen rapidly over the last decade to become major players in the world air transport business. This has been at the expense of long-haul carriers in the United States, Europe and Asia-Pacific. US and European airlines are demanding action that could threaten liberalisation of the international airline industry. Impacts Neither the US government nor EU authorities are likely to unravel the network of international air transport agreements. Yet both Democratic and Republican politicians will be sensitive to demands from core constituencies. Further airline industry liberalisation and growth of Gulf based airlines may therefore be delayed.


2020 ◽  
Vol 31 (1) ◽  
pp. 114-125 ◽  
Author(s):  
Rizwan Raheem Ahmed ◽  
Jolita Vveinhardt ◽  
Usman Ali Warraich ◽  
Syed Shabib Ul Hasan ◽  
Akhter Baloch

The undertaken study examines economic aspects of business operations of the airline industry vis-à-vis organizational complaint handling and customer loyalty. For this purpose, we used a structured questionnaire to collect sample data of 200 respondents from university students and households of Pakistan who are the customers of the airline industry. We employed five independent variables, namely, response time, complaint resolution perfection, executives’ attitude, brand image and responsiveness to complaints. We used the descriptive analysis and SEM-based approaches; namely, confirmatory and exploratory factor analysis for estimation purposes. The findings of the undertaken study demonstrated that the resolution of complaints, timely response, and responsiveness to complaints had a significant and positive influence on  satisfaction of customers and loyalty of clients using international airline services, and this leads to the economic prospects of business operation in the airline industry. However, customer relationship, executives’ attitude and brand loyalty do not have significant influence on the customer satisfaction and customer loyalty. Thus, it is concluded that the immediate response to customer complaint handling enhances the customer satisfaction and customer loyalty that increases the economic aspects of business operation in the airline industry.


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