The dynamics of the airline industry are becoming increasingly pronounced as deregulation and competition increase. Technology or government involvement are no longer guarantees of success. However, the business model is becoming the leading factor of survival in this industry. This blog comments on the development of airline business models throughout the world, and will hopefully give some insight into airline operations, the industry, and business models in general
Wednesday, May 30, 2007
Chicken, meat, or cookie?
Midwest Airlines has repeatedly avoided a takeover by AirTran. With the power of the Internet now a petition has surfaced to show support for the airline and an attempt to "save the cookie." Midwest is popular among travellers for offering freshly warmed chocolate chip cookies and they don't want to loose this perk. Check out www.savethecookie.com. Of course, the airline does also offer leather seating and descent service, but the fact such a small item, a cookie, has been the cause of so much frustration in this airline merger is interesting. Airlines have not done enough to capitalize on their unique attributes to build loyalty. Differentiation in the industry is tough to notice and is supporting the transition to a commodity service. Airline management needs to add some power to get their airline out of this graveyard spiral.
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