The Impact of Internet Technologies on the Airline Industry: Current Strategies and Future Developments

Research output: Contribution to journalArticle

Abstract

This paper examines the impact of Internet technologies on value creation in the airline industry and focuses on the Internet strategies of two European low-cost and two traditional operators.Four notable value drivers in the aviation context are identified, namely efficiency, complementarities, lock-in and novelty.The Internet represents a powerful technology for commerce and communication between airlines and consumers and the paper highlights the implications for corporate strategists as customer expectations increase over time and the boundaries of the airline industry become increasingly blurred.
LanguageEnglish
Pages31-47
JournalStrategic Change
Volume12
Issue number1
DOIs
Publication statusPublished - 13 Jan 2003

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Airline industry
World Wide Web
Internet technology
Costs
Commerce
Aviation
Communication
Operator
Customer expectations
Airlines
Value creation
Complementarity
Lock-in
Novelty
Value drivers

Cite this

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title = "The Impact of Internet Technologies on the Airline Industry: Current Strategies and Future Developments",
abstract = "This paper examines the impact of Internet technologies on value creation in the airline industry and focuses on the Internet strategies of two European low-cost and two traditional operators.Four notable value drivers in the aviation context are identified, namely efficiency, complementarities, lock-in and novelty.The Internet represents a powerful technology for commerce and communication between airlines and consumers and the paper highlights the implications for corporate strategists as customer expectations increase over time and the boundaries of the airline industry become increasingly blurred.",
author = "Dolores O'Reilly and Ronan McIvor and Sharon Ponsonby-McCabe",
note = "Reference text: Amit R, Zott C. 2001. Value creation in e-business. Strategic Management Journal 22: 493–520. Direct Link:AbstractPDF(213K)ReferencesWeb of Science{\circledR} Times Cited: 251 Anon. 1998. Airline On-line. British Airways Press Release, 12 October. Anon. 1999. Airline Buys into Online Travel Agency. British Airways press release, 13 September. Anon. 2000a. Ryanair.com Guarantees Lowest Fares. Ryanair press release, 10 May. Anon. 2000b. Ryanair.com Breaks Bank of Ireland Monopoly at Dublin Airport. Ryanair Press Release, 23 November. Anon. 2000c. One Stop E-shop for Travel Organisers. British Airways press release, 13 December. Anon. 2001a. Aer Lingus Announces 2.5 million Low Fare Seats for Sale in 2002. Aer Lingus press release, 27 December. Anon. 2001b. New Ticketless Service. Aer Lingus press release, 29 August. Anon. 2001c. Review the Status of Your Lost Baggage Online. Aer Lingus press release, 27 August. Barney JB. 1997. Gaining and Sustaining Competitive Advantage. Addison-Wesley: Reading, MA. Bettis RA, Hitt MA. 1995. The new competitive landscape. Strategic Management Journal 16: 7–19. Direct Link:AbstractPDF(1196K)ReferencesWeb of Science{\circledR} Times Cited: 157 Bourgois L, Eisenhardt K. 1988. Strategic decision processes in high velocity environments: Four cases in the micro-computer industry. Management Science 34: 816–835. CrossRef,Web of Science{\circledR} Times Cited: 285Brandenburger AM, Stuart H. 1996. Value-based business strategy. Journal of Economics and Management Strategy 5: 5–25. Direct Link:AbstractPDF(1110K)ReferencesWeb of Science{\circledR} Times Cited: 57 Croft J. 2001. Airlines' web portals prosper despite third-party sites. Aviation Week and Space Technology 154: 86. Web of Science{\circledR} Times Cited: 2Eisenhardt KM. 1989. Building theories from case study research. Academy of Management Review 14: 532–550. CrossRef,Web of Science{\circledR} Times Cited: 2618Evans P, Wurster TS. 1997. Strategy and the new economics of information. Harvard Business Review 75: 71–82. Evans P, Wurster TS. 1999. Getting real about virtual commerce. Harvard Business Review 77: 85–94. PubMed,Web of Science{\circledR} Times Cited: 30Feldman J. 1998. Pricing and cybersales (Internet airline ticket sales and reservations). Air Transport World 35: 64–66. Hamme RM, Champy J. 1993. Reengineering the Corporation. HarperCollins: New York. HolbrookM. 1999. (ed.). Consumer Value. A Framework for Analysis and Research. Routledge: London. Irish Times. 2001. Cheaper Aer Lingus Fares for Bookings on Internet, 27 December. Kotha S. 1998. Competing on the Internet: How Amazon.com is rewriting the rules of competition. In Advances in Strategic Management, BaumJAC (ed.). JAI Press: Greenwich, CI; 239–265. Web of Science{\circledR} Times Cited: 7Pappas G. 2000. The impact of the Internet on the airline industry. Information Technology 49–52. Parasuraman A, Zeithaml V, Berry L. 1985. SERVQUAL: A multiple-item scale for measuring consumer perceptions of quality. Journal of Retailing 64: 12–41. Picot A, Reichwald R, Wigand R. 1997. Information Organization and Management: Expanding Markets and Boundaries. Wiley: New York. Porter ME. 1980. Technology and competitive advantage. Journal of Business Strategy 5: 60–70. CrossRefPorter ME. 2001. Strategy and the Internet. Harvard Business Review 79: 63–78. Porter ME, Millar VE. 1985. How information gives you competitive advantage. Harvard Business Review 63: 149–160. Web of Science{\circledR} Times Cited: 618Sampler JL. 1998. Redefining industry structure in the information age. Strategic Management Journal 19: 345–355. Direct Link:AbstractPDF(77K)ReferencesWeb of Science{\circledR} Times Cited: 52 Sheth JN, Newman BI, Gross BL. 1991. Why we buy what we buy: a theory of consumption values. Journal of Business Research 22: 159–170. CrossRef,Web of Science{\circledR} Times Cited: 76Tranfield D, Starkey K. 1997. The nature, social organization and promotion of management research: Towards policy. British Academy of Management Conference (Keynote Session), London Business School, London. Web of Science{\circledR}Treacy M, Wiersema F. 1993. Customer intimacy and other value disciplines. Harvard Business Review 71: 84–93. Web of Science{\circledR} Times Cited: 73Turban E, Lee J, King D, Chung HM. 2000. Electronic Commerce: A Managerial Perspective. Prentice Hall: London. Williamson OE. 1975. Markets and Hierarchies. Free Press: New York. Yin RK. 1994. Case Study Research: Design and Methods. Sage Publications: California.",
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The Impact of Internet Technologies on the Airline Industry: Current Strategies and Future Developments. / O'Reilly, Dolores; McIvor, Ronan; Ponsonby-McCabe, Sharon.

Vol. 12, No. 1, 13.01.2003, p. 31-47.

Research output: Contribution to journalArticle

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