It also touches upon business topics such as - Value proposition, Corporate governance, Decision making. The board and management of Swissair were challenged in a new way after the country decided in against joining the European Economic Area. Swissair had to remain globally competitive or run the risk of becoming an insignificant regional airline given that it no longer operated under the same conditions as airlines in the European aviation market. Describes the strategic decisions and developments until the collapse of the airline in , with a focus on corporate governance issues.
swissair alliances case study
Swissair Case Analysis | Airlines | Brand
Some 39, of passengers worldwide were unable to take the Swissair flights they had booked, and their tickets were not recognised by other airlines. Swissair desks in all the major airports were shut down, with nobody from the company being available to give advice to stranded passengers, who were offered neither alternative flights nor cash to pay for a hotel room. At Zurich airport 4, passengers who had waited in vain for their flights were put up in civil defence accommodation, but elsewhere Swissair passengers had to sleep on airport floors. The following days were marked by a contradictory and confusing mish-mash of mutual recriminations, as management, banks and politicians blamed each other for the collapse. A crisis had been building up at Swissair since the end of last year. For the first time in its year history, the company recorded a loss in , amounting to 2. The liberalisation and deregulation of aviation markets, beginning in in the USA, means that airlines are exposed to increasingly harsh competition in order to become profit making enterprises, which no longer require government subsidies and routes guaranteed by the state.
Grounding Did Corporate Governance Fail at Swissair Case Study Solution & Analysis
Please join StudyMode to read the full document. Alliance Concrete encounters financial projection issues and CFO Martin Harris must make an executive decision whether to making a principal repayment to the bank, making capital investments, or making the dividend payment to the Capital. If Alliance does decide to refrain from making principal payments or paying dividends to National puts the company in risk of not being able to grow. We recommend that Alliance should make capital investments in order to avoid refute the risk.
This paper studies the potential boundaries to what airlines can or cannot outsource in their operations, and whether financial considerations are paramount in such decisions. The benefits of airline outsourcing Outsourcing is becoming a norm and the next critical business. For example, in the US we will have challenges but the basic business process is not complex.