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Airline companies strategy and Open Skies Agreement

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  1. Introduction.
  2. Airline company strategies.
    1. September 11 and the SARS in 2003.
    2. Important strategic issue.
  3. Open skies agreement.
    1. Domestic sky opening - a decrease in the national Identity for a European one?
    2. An opportunity for the economy?
    3. A lack of security?
  4. Process, the next strategies.
    1. Consolidation.
    2. Reorganization of the sky industry.
    3. Different targets.
  5. Conclusion.

From Icarus to Airbus 380, the dream of the ?flying man? seems to be universal. During the 20th century this dream was becoming real through the development of the plane and airline companies which manage it. The rising need to travel has obliged the authorities to regulate this market by rules and agreements. The last trend is the ?open skies? agreements which deregulate between two countries some of commercial, logistic, strategic and economic points of airline company organization. In 2005, a major ?open skies? agreement about Trans-Atlantic aviation has been signed with difficulty by EU and US. By focusing on business issues, my study deals with the change this agreement will bring for airline companies, according to the key question of the case study: ?What strategies might airlines adopt in this new regulatory environment?? As an answer, I have decided to divide the study in three parts.

[...] We will not attend in a direct competition. Conclusion We have seen that airline companies have adopted a new strategy since the end of the 20th century due to a new business, economic and legal environment. The major act for deregulation, the US-EU ?open skies? agreement, confirms this path. The aircraft market could become more and more competitive but I think that the three great alliances are able to control it by taking over the smallest companies and by being present on the whole segments. [...]


[...] To conclude, the agreement will claim big investments from the countries on facilities and security. The months following the signature of this agreement, will be critical for the countries. The best word to introduce this is anticipation. On the other hand, this new agreement will decrease the national's sky control and therefore increase the European's sky control. The sky being an essential part of countries' borders and identity, this agreement is also the first step to a European Identity regarding passengers travelling, new routes and air security. [...]


[...] [ Accessed: 05.10 .2006] Nera ?Study to assess the effects of different slot allocation scheme.' Online:http://portal.abertay.ac.uk/module/AL/Accountancy_and_Finance/Ec /Ec0903/Section%201%20- %20Case%20Studies/Open%20Skies/Aircraft%20landing%20Slots%202004_01_24_ nera_slot_study.pdf [Accessed: 05.10 .2006] Anon ?Otwarte niebo nad Atlantykiem.' Online:http://www.mojeprzeloty.pl/nowosc.php?dzien=2005-10- 20&org=pozostale. [Accessed: 20.10 .2005] Ireneusz Dulczyk vs USA:Otwarte niebo ju? wkrótce.' Online: http://www.pasazer.com/czytaj.php?lp= [ Accessed: 05.10 .2006] Jeffrey N. Shane US- EU Aviation Agreement: A progress report.' Online: http://www.dot.gov/affairs/shane%20leiden.htm . [Accessed: 04.10 .2006] Jean-Cyril Spinetta EU/USA Aviation Agreement; what it will change?.' Online: http://www.airfrance.fr/US/en/local/toutsurairfrance/actualites/af_disc ours_liste.htm [ Accessed: 06.10 .2006] Subcommittee on Aviation, ?U.S.-E.U. Open Skies agreement: with a focus on DOT'S NPRM regarding ?actual control' of U.S. air carriers?, Online: http://www.house.gov/transportation/aviation/02-08-06/02-08- 06memo.html#PURPOSE U.S. Department of [...]

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