The airline industry is in a state of radical restructuring as its
markets and key stakeholders (customers, airline labour and
management groups, governments, and the financial community) adjust
to the new aviation realities. Airline executives can be forgiven
for being overwhelmed by technology proliferation, zestful new
paradigm airlines, September 2001, business cycles, Iraq, SARS, and
animal diseases. The leadership challenge for all carriers is now
to select and execute appropriate business models, thinking both
'inside' and 'outside' the 'box', to turn conventional wisdom
upside down to achieve dramatic increases in productivity. Some
legacy carriers still need to create an effective strategy for much
larger cycles that encompass major discontinuities. Burdened by
past decisions, they are forced to fight with one hand tied behind
their back to 'convert volume to value', to survive and prosper.
Some new airlines have been at the forefront of shaping change,
developing a vision of the mass-market, assessing the customer
value of their core processes, and using a 'back-to-basics'
business approach. Both groups should take a sideways glance at
what works in other industries and implement those insights into
actions.
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