Strategies for managing risk in a changing aviation environment

Nicole Adler; Aaron Gellman

doi:10.1016/j.jairtraman.2011.12.014

Strategies for managing risk in a changing aviation environment

J Air Transp Manag. 2012 Jul:21:24-35. doi: 10.1016/j.jairtraman.2011.12.014. Epub 2012 Jan 30.

Authors

Nicole Adler^{1

2}, Aaron Gellman²

Affiliations

¹ School of Business Administration, Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel.
² Kellogg School of Management, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208, United States.

Abstract

Given the increasing volatility in the economic performance of airlines, partially reflecting the dynamics of demand for air transport and the fixed costs associated with the industry, all stakeholders need to consider appropriate strategies for better managing the risks. Many risks were identified in the literature previously, some even decades ago, however most have yet to be satisfactorily addressed. Urgency is growing. Removal of the remaining barriers to competition at all levels, congestion management, open skies policies across continents, computer-centric air traffic management systems and increased research and development into the processes and technology needed to reduce environmental externalities remain among the top challenges for the next decade.

Keywords: Airline competition; Airport commercialization; Aviation regulation; Aviation value chain; Strategies towards risk.