Will the AMR whale survive or be swallowed by a minnow.

[AAquila]

Flight for Survival: A New Business Model for the Airline Industry
By Tom Hansson, Jürgen Ringbeck, and Markus Franke

To pare down their colossal operating costs, giant U.S. and European carriers must restructure the hub-and-spoke system and eliminate complexity....................>

http://www.strategy-business.com/press/art...g=all&ps=Cv2jY0

 

[whatkindoffreshhell]

Good article -- thanks for the contribution!

My question for the authors would be regarding their proposal of a "Tailored Business System" used by manufacturers as a solution to the airlines'' problems. Manufacturing is not an emotional, customer-facing process.

 

[mrman]

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On 5/29/2003 844 AM whatkindoffreshhell wrote:

Good article -- thanks for the contribution!

My question for the authors would be regarding their proposal of a "Tailored Business System" used by manufacturers as a solution to the airlines' problems. Manufacturing is not an emotional, customer-facing process.
______________
I think the sales guys at say Boeing would diagree

 

[whatkindoffreshhell]

post deleted

 

[whatkindoffreshhell]

C''mon ---- first read the article before posting.

So what is your point? Boeing salesguys don''t have to stand in front of a perplexed dad with four anxious kids, a mountain of luggage and an already-irate-wife all on their way to MCO and diagnose the family''s e-tickets problem.

Also, Boeing airplanes are a sytem, not a commodity. There is a night & day difference in how you sell a system versus a commodity.

Thanks for playing!

 

[mrman]

I beg to differ. Try selling a new 737, to a non WN customer who does not want it configured as WN's (Boeings largest customer) while making your quota and knowing that your lack of sale could mean peoples jobs. Or the 717 sales guy trying to keep Long Beach open. And if you don't think a plane is a commodity, take a look at the desert, plenty of "slightly used" planes out there for sale.

 

[Segue]

I know some of the authors personally and Jurgen has done work for UAL. The idea behind tailored business streams is that you need to introduce some kind of specialization on the front lines, rather than the "one size fits all" approach adopted now. It makes sense that the passenger''s needs be prepared before getting to the airport, and their are decicated specialists for handling irregular operations. Ever stand in line to check in when the agents are busy with a string of re-accomodations?