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Management of Change

Adapting in the airline industry

Robert Nutter examines how the airline industry has adapted to changes in the market

Budget airlines like easyJet have started challenging the national flag carriers on short-haul routes
easyjet

Since the introduction of passenger air travel in the 1930s there have been many changes to the air transport market. Once only the privilege of the rich, getting on a plane is now for most people rather like getting on a bus or a train. It is relatively cheap to fly and more and more destinations are added every year. Even in the UK the domestic air travel market has grown significantly in recent years, with commercial airports in such places as Newquay, Norwich and Oxford servicing an increasing number of flights.

The last 60 years have seen the growth of cheap package holidays, which initially flew to Mediterranean destinations from the UK but now stretch to countries as far away as the Dominican Republic and Cuba. However, there have been setbacks too, especially at the luxury end of the air travel market. Concorde was not sustainable commercially in the long term, and was only ever operated by British Airways and Air France. In addition, business-classonly airlines such as Silverjet and MaxJet were victims of the recent recession.

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Porter’s generic strategies

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