publication . Article . 2016

The strategic impact of airline group diversification: The cases of Emirates and Lufthansa

Name: The strategic impact of airline group diversification: The cases of Emirates and Lufthansa
Keywords: Airline diversification, Airline groups, Strategic direction

N. Redpath; David Warnock-Smith; John F. O'Connell;

Open Access

Published: 03 Sep 2016 Journal: Journal of Air Transport Management, volume 64, pages 121-138 (issn: 0969-6997,

Publisher: Elsevier BV

Country: United Kingdom

Summary

Abstract

The airline industry is a diverse sector, requiring the support of a varied range of ancillary businesses such as maintenance, catering and travel agencies to carry out its activities. Many of these supporting businesses demonstrate the potential to drive wider profit margins despite generating lower revenues than the airlines themselves, making them attractive investment opportunities in a sector prone to volatile and often lacklustre trading. This study investigates two of the largest diversified airline groups, Germany's Lufthansa Group and Dubai's Emirates Group, each adopting a distinct approach towards diversification that may serve as a model for airline ...

doi: 10.1016/j.jairtraman.2016.08.009

Subjects

free text keywords: Airline diversification, Airline groups, Strategic direction, Industrial organization, Revenue, Marketing, Business, Competence (human resources), Vertical integration, Strategic impact, Diversification (marketing strategy), Third party, Investment opportunities, Profit margin

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