Competitive strategies in the airline industry

Abstract

The airline industry is a dynamic industry with intense competition. Deregulation, the international competition structure, and economic and COVID-19-like crises make the sector even more fierce. In this chapter, airline industry competitive strategies are discussed. For this purpose, following the introduction part, the concepts of strategy, business strategy, and competitive structure of the airline industry are discussed, and the place of competitive strategies in business strategies is explained. The airline industry structure is analyzed using Porter's five forces model. Two fundamental competitive strategy approaches, Porter's generic strategies and Miles and Snow's competitive strategies, are examined in detail for the airline industry. Following the presentation of the two well-known strategy frameworks, the chapter will end with a conclusion part.