You are here

Home » Content

An Assessment of the Expansion Strategy followed by Avianca Airlines: Period 2008-2012

Journal Name:

  • Journal of Airline and Airport Management

Publication Year:

  • 2017
DOI: 
https://doi.org/10.3926/jairm.63

Key Words:

Author Name
Abstract (2. Language): 
Purpose: This article aims to apply to the case of Avianca Airlines the Analytical Model for the Assessment of Airline Expansion Strategies developed by Moreira (2014) in order to explain the rationale of the expansion strategy followed by this airline and indicate other possible expansion strategies. Design/methodology/approach: This article is a case study in the sense that it aims to arrive to broad generalizations based on the collected evidences, focusing on one of the most traditional airlines in the world. This article is a positivist case study, based in the positivist understanding; because it is supported by objective facts of the situation which are informed by the researcher’s interpretive understanding according to it is recommended for this type of study. Findings: The application of the Analytical Model for the Assessment of Airline Expansion Strategies above referred was successful, considering that the model was able to explain a wide range of complex aspects of the Avianca’s development. Thus, being one of the oldest airlines in continued operation in the world, the expansion process of this airline is connected to many political, sociological and economic facets - ie., its general environment - of its mother country, Colombia. The analytical model offered the opportunity to explore these issues in a detailed manner, adding a broader comprehension of this airline that goes beyond its operating and economic analysis.Originality/value: They reside on the fact that this is the first time that this analytical model is applied to study extensively an actual situation. Besides, airlines in Latin America have not been widely covered by the academia and this is an opportunity to begin to fill this gap. Furthermore, the referred analytical model is applicable to organizations or firms that operate in other industries if the proper adjustments are made. Implications: The implications for the academic research are to understand that the reasons for the success or failure of an airline in an expansion process may be explained by the suitability between the expansion strategy followed by this airline, its business model, its operating environment and its general environment. Moreover, this article demonstrates that the analysis of the suitability of the expansion strategy followed by a specific airline may be made in the light of a solidly founded analytical framework.
Bookmark/Search this post with
FULL TEXT (PDF): 
PDF icon arastirmax-assessment-expansion-strategy-followed-avianca-airlines-period-2008-2012.pdf
  • 1
80
105
  • English

REFERENCES

References: 

Altés, C. (2006). El turismo en América Latina y el Caribe y la experiencia del BID. Banco Interamericano de
Desarrollo, www.iadb.org.
Avianca Holdings S.A. (2013). FORM F-1 Registration Statement, submitted to United States Securities and
Exchange Comission (SEC) in June 24, 2013, www.sec.gov.
Avianca Holdings S.A. www.aviancaholdings.com.
Avianca Holdings S.A. (2013). Prospectus Form 1 Registration Statements applied to U.S. Securities and Exchange
Commission (SEC), 2013 June, 24th, www.sec.gov.
Benbasat, I., et al. (1987). The Case Research Strategy in Studies of Information Systems, MIS Quarterly
11, 369-386. https://doi.org/10.2307/248684
Boeing Company. (2007). Airline Strategy and Business Models, unpublished. Airline Planning Seminar’s
supporting media.
Central Intelligence Agency – CIA. The World Fact Book, www.cia.gov.
Cepeda G., & Martin, D. (2005). A Review of Case Studies Publishing in Management Decision 2003 –
2004. Management Decision, 43(6). https://doi.org/10.1108/00251740510603600Copa Airlines. www.copaairlines.co.uk.
Davies, R.E.G. (2011). Airlines of Latin America Since 1919, Putnam, 1984. Flightglobal, Avianca-
TACA, Copa and United-Continental forge partnership, 2011 January 27 issue, www.flightglobal.com.
Hitt, M.A., Ireland, Duane Ireland, R., Hoskisson, R.E. (2014). Strategic Management: Competitiveness
and Globalization - Concepts, Cengage Learning, 2014.
Instituto Costarricence de Turismo, Anuário Estadístico 2008, 2009, www.visitcostarica.com.
International Air Transport Association (IATA), Vision 2050 Report, 2011, www.iata.org.
International Civil Aviation Organization (ICAO). ICAO Data Plus, www.icao.int/dataplus.
International Monetary Fund. World Economic Outlook Database, October 2014, www.imf.org.
Kotler, P., & Keller, K. (2011). Marketing Management, Prentice Hall, 2011.
Moreira, M.E. (2014). An Analytical Model for the Assessment of Airline Expansion Strategies. Journal
of Airline and Airport Management, 4(1), 48-77. https://doi.org/10.3926/jairm.15
Nalebuff, B.J., & Brandenburger, A.M. (1997). Co-opetition: Competitive and Cooperative Business
Strategies for the Digital Economy. Strategy & Leadership, Nov/Dec 1997, 1996.
https://doi.org/10.1108/eb054655
Porter, M.E. (1983). Industrial Organization and the Evolution of Concepts for Strategic Planning: The New
Learning, Managerial and Decision Economics. pg. 172. https://doi.org/10.1002/mde.4090040307
Rhoades, Stephen A., The Herfindahl-Hirschman Index, Federal Reserve Bulletin, 1993, issue Mar,
pages 188-189, www.federalreserve.gov.
United States Department of State, Country Reports on Terrorism 2012, May 2013, www.state.gov.
United States Department of State, U.S - Colombia Air Transport Agreement of May 10, 2011,
www.state.gov.
World Airline News, issue of May 28th 2013, www.worldairlinenews.com.
Yin, Robert K., Applications of Case Study Research, Sage Publishing, 1993.

Thank you for copying data from http://www.arastirmax.com