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Strategic Response of European Airlines to Market Dynamics: A Comparative Analysis

Author

Listed:
  • Ugo Arrigo

    (Department of Business and Law, University of Milano-Bicocca, 20126 Milan, Italy)

  • Massimo Beccarello

    (Department of Business and Law, University of Milano-Bicocca, 20126 Milan, Italy)

  • Giacomo Di Foggia

    (Department of Business and Law, University of Milano-Bicocca, 20126 Milan, Italy)

Abstract

The airline market is constantly evolving and requires managers to adopt strategies to meet the changing demands and organizational requirements of the sector. As a result of its liberalization, the European market has transformed from a set of national protected sectors to a single sector. Although the market has grown over the last two decades, the industry has faced difficulties due to various economic, safety, environmental, and health issues, which have recently emerged. This study analyzes the airlines’ strategic responses to increased competition from the turn of the century to 2019, excluding the pandemic period, to focus on market dynamics driven by European competition policy. A five-pillar strategic framework highlighting common strategies and divergences between major European network carriers is outlined through a multi-case analysis of major European markets. The sample includes France, Germany, Italy, and Spain. Results have managerial implications that highlight the importance of strategic adaptability in an industry landscape that continues to evolve. Managerial implications fall into the following three categories: strategic positioning, cost optimization, and business diversification.

Suggested Citation

  • Ugo Arrigo & Massimo Beccarello & Giacomo Di Foggia, 2023. "Strategic Response of European Airlines to Market Dynamics: A Comparative Analysis," Administrative Sciences, MDPI, vol. 13(12), pages 1-14, December.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:12:p:255-:d:1298261
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    References listed on IDEAS

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    1. Lieshout, Rogier & Malighetti, Paolo & Redondi, Renato & Burghouwt, Guillaume, 2016. "The competitive landscape of air transport in Europe," Journal of Transport Geography, Elsevier, vol. 50(C), pages 68-82.
    2. Giacomo Di Foggia & Massimo Beccarello, 2021. "Market Structure of Urban Waste Treatment and Disposal: Empirical Evidence from the Italian Industry," Sustainability, MDPI, vol. 13(13), pages 1-12, July.
    3. Abate, Megersa & Christidis, Panayotis & Purwanto, Alloysius Joko, 2020. "Government support to airlines in the aftermath of the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 89(C).
    4. Jankiewicz, Jacek & Huderek-Glapska, Sonia, 2016. "The air transport market in Central and Eastern Europe after a decade of liberalisation – Different paths of growth," Journal of Transport Geography, Elsevier, vol. 50(C), pages 45-56.
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