European Low-Cost Airlines

This study provides case analyses of European low-cost airlines. To more fully understand this process, a background of the study is provided. In the early years of the twenty-first century, the air transportation industry is in a state of chaotic transition on a global basis. A souring of the global economy that began in late-2000, followed by the terrorist attacks in the United States in September 2001, wars in the Middle East, and continued deteriorations in economic activity in most areas of the world are cited frequently as the causes of the calamitous mess in the global air transportation industry (Cohen, 1995).

There are justifications to support each of the factors mentioned in the preceding paragraph as a causal factor in the instability of the air transportation industry. There are, however, other factors that may have pushed the air transportation industry to its present state even in the absence of struggling economies, terrorist attacks, and Middle Eastern wars.

Flying on passenger aircraft was once a privilege primarily for the economically well-off who demanded luxury and who were both able and willing to pay for luxury service. Today, in all parts of the world, a newer segment is developing rapidly into the major force in the air transportation passenger market. This segment is comprised of people who prize utility over luxury. They seek reliable service, safe service, and low prices.

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heory Since management of information technology is an important aspect of understanding a company, Strategic Management Theory is presented. Strategic management developed over the last three decades of the twentieth century. As the concept of strategic management evolved, strategic management systems emerged to facilitate the implementation of organizational strategy (Frigo and Litman, 2001). Strategic planning is a component of strategic management. Strategic planning is the process of determining the mission, major objectives, strategies, and policies that govern the acquisition and allocation of resources to achieve organizational aims. Strategic planning is a process that generates the specific actions required to carry out a particular strategy (Thompson and Strickland, 2003). By definition, thus, the strategic planning process begins subsequent to the adoption of a strategy. The entire strategic process within an organization, however, is a set of highly interrelated components, which function within a dynamic environment as a system. Thus, in the so-called real world, strategic planning will often precede strategy development, because of the cyclical character of the strategic process (Hax and Majluf, 1996).

Category: Business - E