Flying Too Close to the Sun ─ The Success and Failure of the New-Entrant Airlines

Since deregulation in the United States most jet operating new-entrant carriers have failed. Theories on competition had been put to the test and reality turned out to be different to the vision. To begin with many new-entrant airlines were successful, but were not able to create sustainable strategy to survive as incumbent carriers adjusted to the new operating environment.
This book explains the complex issues that led to the almost total failure rate of the "first wave" new-entrant airlines. The background to the pre-nineties failure predicament is examined in order to give a good overview of the characteristics of new-entrant airlines and of the environment in which they operate. Attention is given to the new-entrants' strategy and management in order to explore past deficiencies and to pave the way for successful new strategies.
The readership includes managers in the airline industry, academics, aviation regulatory authorities, transport policy makers and students.

Dr. Sveinn Vidar Gudmundsson is Assistant Professor at the Faculty of Economics and Business Administration at the University of Maastricht, the Netherlands.