The difference between European and US airline management practice: the case of new-entrant airlines

Abstract

The paper maps the difference between European and US airline management practice. The research was based on a questionnaire survey among airline managers of new-entrant airlines in the USA and Europe. The main findings were that European new-entrant carriers are trying to shed the inefficiencies caused by the heavily regulated pre-liberalization environment, mastering some of the tools and strategies necessary to survive in a liberalized market. Managers of US new-entrant carriers, on the other hand, show marked difference in their attitude towards their staff, a characteristic of non-unionized operating environment, but they are de-emphasizing hub and spoke operations and high overall market-share. The overall conclusion is that European carriers are learning how to cope with the new liberalized environment while the US airlines are well-seasoned, providing much to learn for their European counterparts.