Title: Global airline alliances, value propositions, and strategic misdirection at Swissair, a clinical study: 1994–2001

Authors: Ram Baliga, Timo Santalainen, David C. Lottenbach

Addresses: Babcock Graduate School of Management, Worrell Professional Center, Wake Forest Drive, Wake Forest University, Winston Salem, NC 27109, USA. ' Helsinki School of Economics, STRATNET, 8, place du Bourg-de-Four, CH-1204 Geneva, Switzerland. ' Geerenstrasse 13, 8185 Winkel, Zurich, Switzerland

Abstract: In the late 1970s the aviation industry in the USA underwent a period of deregulation. By the mid-1980s Europe also began feeling deregulatory pressure. This paper presents a brief history of the forces that led to deregulation and the challenges that were faced by all airlines during that time period. A detailed analysis of Swissair|s reaction to deregulation is also provided. This analysis focuses on the strategies, value propositions and business models that Swissair employed. The paper concludes by suggesting the course of action that should have been taken by Swissair.

Keywords: airlines; strategy; value proposition; network carriers; airline alliances; strategic misdirection; Swissair; aviation industry; deregulation; business models.

DOI: 10.1504/IJRM.2008.019797

International Journal of Revenue Management, 2008 Vol.2 No.2, pp.180 - 200

Published online: 02 Aug 2008 *

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