List of Figures | p. ix |
List of Tables | p. xiii |
Foreword | p. xv |
Foreword | p. xvii |
Foreword | p. xix |
Foreword | p. xxi |
Preface | p. xxiii |
Acknowledgements | p. xxix |
The Heavy Burden of Excess Complexity | p. 1 |
Industry Characteristics | p. 3 |
Excessive Government Intervention | p. 3 |
Network-Driven Structure | p. 6 |
Organized Labor | p. 7 |
High Labor, Capital, and Fuel Intensity | p. 9 |
High Fixed and Low Marginal Costs | p. 11 |
High Cyclicality and Seasonality | p. 12 |
Revenue Vulnerability | p. 14 |
Destructive Competition | p. 16 |
Commodity Products | p. 17 |
Vulnerability to Weather and Infrastructure | p. 19 |
Uneven Playing Field | p. 20 |
Extremely Variable Planning Horizon | p. 22 |
The Multi-Faceted Challenge | p. 22 |
Conclusion | p. 25 |
Hard-Won Lessons: The Continuum from Success to Failure | p. 31 |
Conspicuous Successes | p. 32 |
Safety | p. 32 |
Accessibility | p. 32 |
Reliability | p. 33 |
Continuously Lower Fares | p. 33 |
Constant Innovation | p. 34 |
Lower-Cost Feeder Airlines offering Jet Service | p. 35 |
Economic Impact on Countries and Regions | p. 35 |
Low-Fare Airlines | p. 36 |
The Jury is Still Out | p. 39 |
Hub-and-Spoke Systems | p. 39 |
Frequent Flyer Programs | p. 42 |
Strategic Alliances | p. 44 |
Diversification | p. 46 |
Millstones | p. 47 |
Pricing Strategies | p. 47 |
Overly Diversified Fleet | p. 52 |
Overly Complex Product for the Price | p. 56 |
Inefficient Airports | p. 59 |
Conclusions | p. 60 |
The Shakeout Continues | p. 63 |
Drivers Reshaping the Marketplace | p. 63 |
Management Failure to Adapt | p. 64 |
Availability of Low-Fare Options | p. 68 |
Emerging Distribution Systems | p. 73 |
Consumer Revolt over Lack of Price-Service Options | p. 77 |
Flawed Network Structure | p. 80 |
Changing Focus of Government | p. 86 |
Some Plausible Outcomes | p. 88 |
Some Failures over a Long Period | p. 90 |
Regrouping | p. 90 |
Hub and Fleet Rationalization | p. 91 |
Consolidation and Changes in Size and Scope | p. 92 |
Wider Adoption of the Low-Fare, Low-Cost Strategy | p. 92 |
Radical General Cost Reduction | p. 93 |
Conclusions | p. 94 |
Healthy Outcomes: Seizing Opportunities | p. 97 |
Globalization and Evolving Demographic Patterns | p. 97 |
Mature Markets | p. 104 |
Technology | p. 109 |
Aircraft | p. 109 |
Passenger Services | p. 117 |
Reshaping Marketing and Operating Practices | p. 120 |
Conclusions | p. 126 |
Survival Strategies and Execution in an Uncertain World | p. 129 |
Stakeholder Discipline and a Shared Mindset | p. 130 |
Management | p. 130 |
Labor | p. 142 |
Airports | p. 147 |
Governments | p. 148 |
Shared Mindset | p. 152 |
Learning from Successful New Entrants | p. 154 |
Long-Term Cost Minimization | p. 155 |
Disciplined Management | p. 156 |
Sustainable Market Positioning | p. 159 |
Serious Risk Management | p. 160 |
Profiting from Multi-Industry Insights | p. 161 |
Flexibility | p. 161 |
The Power of the Brand | p. 161 |
Cost Control and Mass Merchandising | p. 162 |
The Customer as a Profit Center | p. 164 |
Conclusions | p. 173 |
A Whirlwind Tour of Some Radical Scenarios | p. 175 |
Are we at a Plateau? | p. 176 |
Where is the Next Breakthrough? | p. 178 |
Aircraft | p. 178 |
Community-Sponsored Airline Operations | p. 180 |
Alliances | p. 180 |
International Services by Low-Cost, Low-Fare Airlines | p. 181 |
Airport Passenger Processing Staff and Systems | p. 182 |
In The Year 2020 ... | p. 183 |
Conclusions | p. 183 |
Index | p. 187 |
About the Author | p. 193 |
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