Abstract
AbstractOutsourcing has become a vital source of competitive advantage because it provides several benefits for organizations, such as reducing the cost of ownership of products/services, resolving technical problems without increasing the number of staff, and enabling the company to focus on its core business. Airlines typically outsource a broad range of business processes such as aircraft maintenance, ground handling, IT systems, crew training, maintenance training, catering services, and aircraft leasing. Some of the airline business outsourcing decisions are tactical and some are strategic. In this section, the decision of airlines to outsource aircraft maintenance, ground handling, and information technologies is examined within the framework of transaction costs and the research dependence theory. Moreover, it was discussed whether the outsourcing decision for these functions is strategic or not.KeywordsTransaction costResearch dependencyGround handlingAircraft maintenanceInformation technologies
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