Managing in Troubled Times Case Study

Rising Fuel Cost: A Threat to Europe’s Discount Airlines

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Abstract:
Crisis management through cost cutting in the discount airlines industry in the face of rising fuel costs inspires the context of this case study. This case talks about how discount airlines in Europe were affected due to the rise in fuel costs and were faced with the possibility of being wiped out off their very existence. The very business model that the discount airlines followed was at stake. This case also talks about the steps that the discount airlines undertook to counter the crisis. It facilitates a discussion on the prudence of the crisis management strategies that the European discount airlines undertook. The case tries to analyse the future of such airlines in the face of rising fuel prices.

Pedagogical Objectives:

• To analyse the business model of the discount airlines.
• To analyse the European airline industry with specific reference to the discount airlines in Europe.
• To analyse the effect of the rising fuel prices on the discount airlines.
• To analyse the crisis management strategies used to counter the crisis.
• To analyse the future of the discount airlines in the face of rising fuel prices.

Keywords : Airline industry; Low-cost airlines in Europe; Discount airlines;Business model of full service airlines; Business model of discount airlines; Crisis management; Cost cutting; Rising fuel cost; Cost structure of airlines; European airline industry; Cost management; Effect of rising oil prices; Jet fuel; Future of low-cost airlines

Contents:

• Low Cost Airliners in Europe
• The Crisis