C/B/1134. Competitive advantage of US low cost carriers

The paper looks at the reasons behind a drop of profitability in the US airline industry during the 1990s. The policies of the Civil Aeronautics Board (CAB) are described; the effective competitive strategies of low cost carriers (LCC) SouthWest Airlines and JetBlue are discussed arguing why the subsidiaries of the legacy carriers were not able to compete with LCC. A course of action for the Delta Express and other legacy carriers is suggested.

C/B/1135. Competitive advantage of US low cost carriers

This paper responds to the following questions: During the 1990's none of the five largest air carriers in the US earned its cost of capital. Why do such low rates of return on investment persist in the airline industry? Despite the challenging industry environment, airlines like Southwest Airlines and JetBlue earned enviable returns. How? Why have all the low-cost subsidiaries of legacy airlines, including Delta Express, failed? What are the strategic options available to the cross-functional team that Mark Balloun co-leads in March 2002? Based on the information available to you in the case, what course of action for the Delta Express business would you have recommended to Delta' board at that point in time?

C/B/887. Proposal. easyJet, Low-cost Airline in 21st Century: Contribution of Core Competencies in the Success of Low-cost Airlines

The paper is a research proposal into the contribution of core competencies (CC) to the success of low-cost airlines, particularly, easyJet. The background and the academic context of the research are presented highlighting the CC of easyJet and low-cost airlines. Research objectives are outlined; research approaches, design and methods of data collection are described; the issues of the validity and ethics of the study are considered; the timetable and resources are defined.

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