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Compact case
Case
-
Reference no. 303-187-1
Published by: Aalto University School of Economics (formerly HSE)
Published in: 2003

Abstract

This is the second of a four-case series (303-186-1 to 303-189-1). Philippe Bruggisser took over as the CEO of Swissair in 1996. Fragmentation, excess capacity, declining government interest in subsidising loss making airlines, and European Union-initiated deregulation, were a challenge for small airlines. Swissair watched as European carriers benefited from added flights and alliances even as their governments were reluctant to renegotiate individual aviation treaties with Switzerland. The Swissair (A) case details strategic decisions made by Bruggisser as he sought to strengthen Swissair''s position in the turbulent industry. Rather than entering large alliances such as Star, Oneworld or SkyTeam, Bruggisser tried to build the Qualiflyer Group - by buying significant stakes in second-tier European airlines and in non-European international airlines such as South African Airways, and negotiating some route-specific agreements with other international airlines such as Cathay-Pacific. Bruggisser also adopted another contrarian strategy - against the prevailing trend of outsourcing many of the activities involved in running an airline such as catering, aircraft maintenance, etc and attempting to grow Swissair''s position in these to become a global service provider to other airlines. Swissair (B) details the consequences of Bruggisser''s strategic decisions, strategic decisions made by his interim successor and the appointment of Mario Corti as the CEO. The basic question posed in the case is what actions should Mario take to turnaround SAirGroup. Swissair (C) details strategic decisions made by Mario Corti and raises questions about what constitutes the ''core'' for the group. Swissair (D) details the group''s fall into bankruptcy following the terrorist attacks in the US on 11 September 2001. The cases can be used either in a module on strategic decision making during a period of turbulence and discontinuity or to discuss the intricacies of strategic alliances in the aviation industry. The case set is a particularly good follow-up to the best-seller Harvard Business School case ''Swissair''s Alliances'' (9-794-152) and when adopted as a set, permits detailed examination of Swissair''s strategic responses to the changing aviation scene. Last, but not least, the cases also permit one to discuss the risks involved in adopting a revolutionary or contrarian strategy.
Industry:
Size:
Large
Other setting(s):
1994-2001

About

Abstract

This is the second of a four-case series (303-186-1 to 303-189-1). Philippe Bruggisser took over as the CEO of Swissair in 1996. Fragmentation, excess capacity, declining government interest in subsidising loss making airlines, and European Union-initiated deregulation, were a challenge for small airlines. Swissair watched as European carriers benefited from added flights and alliances even as their governments were reluctant to renegotiate individual aviation treaties with Switzerland. The Swissair (A) case details strategic decisions made by Bruggisser as he sought to strengthen Swissair''s position in the turbulent industry. Rather than entering large alliances such as Star, Oneworld or SkyTeam, Bruggisser tried to build the Qualiflyer Group - by buying significant stakes in second-tier European airlines and in non-European international airlines such as South African Airways, and negotiating some route-specific agreements with other international airlines such as Cathay-Pacific. Bruggisser also adopted another contrarian strategy - against the prevailing trend of outsourcing many of the activities involved in running an airline such as catering, aircraft maintenance, etc and attempting to grow Swissair''s position in these to become a global service provider to other airlines. Swissair (B) details the consequences of Bruggisser''s strategic decisions, strategic decisions made by his interim successor and the appointment of Mario Corti as the CEO. The basic question posed in the case is what actions should Mario take to turnaround SAirGroup. Swissair (C) details strategic decisions made by Mario Corti and raises questions about what constitutes the ''core'' for the group. Swissair (D) details the group''s fall into bankruptcy following the terrorist attacks in the US on 11 September 2001. The cases can be used either in a module on strategic decision making during a period of turbulence and discontinuity or to discuss the intricacies of strategic alliances in the aviation industry. The case set is a particularly good follow-up to the best-seller Harvard Business School case ''Swissair''s Alliances'' (9-794-152) and when adopted as a set, permits detailed examination of Swissair''s strategic responses to the changing aviation scene. Last, but not least, the cases also permit one to discuss the risks involved in adopting a revolutionary or contrarian strategy.

Settings

Industry:
Size:
Large
Other setting(s):
1994-2001

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