publication . Article . 2016

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

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, Copyright policy)
  • Publisher: Elsevier BV
  • Country: United Kingdom
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 ...
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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