The Airline Industry: Flying on Its Own Is not Enough

The airline industry is a highly competitive market with a commoditized product and unique industry-specific characteristic. The chapter discusses what managerial practices are needed to strive in such an environment: Does the ideal top management team of an airline possess in-depth industry expertise, or is experience in various industries of advantage? The chapter argues that different business models in aviation require a different degree of specialization: Hub carriers still require a top management team with in-depth industry knowledge; a low-cost carrier in contrast may benefit more from cross-industry experience. The article shows how the industry dynamics and the necessary managerial skillsets have evolved throughout the history of aviation. It then elaborates on the six forces that make aviation special and subsequently discusses the difference in the required managerial skillsets for today’s main business models in aviation: hub airlines and LCC.