Leadership and Organisation in the Aviation Industry is a dense and well written book about different how different professional cultures interact. The book is based upon a PhD by Marc-Philippe Lumpé. He basis his analysis the GLOBE project and how that relates to the aviation industry The GLOBE project (global leadership and organisational behaviour effectiveness research project incorporated the ILT and HOFSTEDEs dimensions into one unique study. In short it looked at national culture and how different cultures adapt to such things as: uncertainty avoidance, power distance, social collectivism, future orientation etc. The theoretical basis of this book centres around this study and how it helps us understand different national and professional cultures.
Category Archives: Airlines
The turnaround of continental airlines in the 1980’s is one of the most remarkable stories of the corporate world. The company was set up in 1934 and for decades had been known for quality of its service and the stability and caring of its governance structure. Indeed the CEO Bob Six had actually been CEO of the company from 1936 till 1981. The deregulation of the airline industry by the Carter administration changed all that. Suddenly, Airline companies became caught in a dog fight for market share. In an industry that saw its profits plummeting due to the increase of oil prices and also the lack of barriers to entry in the industry. By the time Gordon Bethune took over in 1994, the company had gone bankrupt already and had gone through 10 leaders in 10 years and looked, to all intents and purposes to be totally doomed. Continue reading
BOOK REVIEW: “Up in the Air” by Greg J. Bamber, Jody Hoffer Gittell, Thomas A. Kochan & Andrew Von Nordenflycht
Airline travel used to be so glamorous, those days are gone. If you think you are having a hard time getting home on another delayed flight, the four authors of this book have a stark warning. The employees are even more fed up than the passengers. Far from the glamorous days of the 60s and 70s, epitomised by Leonardo Di Caprio in “Catch me if you can”. The industry has become known for a series of bankruptcies, low wages and increasingly harder working conditions. Continue reading
The low cost model has become so ubiquitous today that it’s quite easy to f0rget that, when Southwest airlines set up in 1971, its business model was quite revolutionary. This was just two years after Concorde had come into existence, and talk of the time was of quick flights for important business people prepared to pay a high price. The two oil shocks of the 1970s, and changes in consumer tastes had a huge impact on this and, no doubt had a great, positive impact on the business model set up by Southwest Airlines.
Today we had the honour of going on a VIP tour to Boeing’s Everett facilities. You may not have realised it, but chances are that you’ve flown on a Boeing aircraft before. With revenue of over 86 Billion dollars in 2013 making Boeing is one of the most successful airplane manufacturers in the world. Our first stop was actually Boeing’s last stop in their value chain, Everret’s delivery centre. This is where Boeing’s transactions are completed and customers can pick up their much awaited airplanes. Continue reading
“Innovative and dynamic employees required.” Navir Rustomfram-Shukla, A GEM Alumnus (MIB ’09) talks about his work at Airbus.
Navir Rustomfram-Shukla, a recent alumnus from Grenoble Ecole de Management, is presently working at Airbus as a financial controller. He had previously studied at the University of Mumbai in India and graduated in Economics before veering off into business.
“Great purchasers are great salesmen.” Philippe Grau, A GEM Alumus (ESC ’97) talks about purchasing and networking at Airbus.
Philippe Grau, an alumnus from Grenoble Ecole de Management (graduated 1997), is currently a Commodity Sourcing Group Leader in Airbus’ Procurement, an Organization with over 2000 employees, including buyers, sourcing group leaders (like Philippe), multi-functional team leaders, supply chain specialists, and many other professionals.
Tom Enders has had an interesting academic background, prior to getting involved in Germany’s political affairs and the German defense sector and then his corporate career at Airbus and EADS. In his early 20s, besides the University of Bonn, he also went abroad to the United States to study economics, politics, and history, an experience that gave him a launch into ‘going international.’ He offers his advice for young business graduates in their 20s today.
An Interview with Tom Enders, CEO of EADS (Airbus) Part 2: Strategy and execution in the aircraft industry)
Tom Enders is the CEO of EADS, the parent company of Airbus, the giant commercial aircraft company. EADS is a pan European corporation that employs over 140 000 people and generated revenues of nearly €57 billion last year. In the second part of this three-fold interview, Tom Enders talks about strategic execution at Airbus and EADS, how politics can influence strategic plans and the relationship between Airbus and Boeing.
An Interview with Tom Enders, CEO of EADS (Airbus) Part 1: The challenges of running a large international corporation
In May, I had the opportunity to interview Tom Enders, CEO of EADS. The company is often better known for its Airbus division. EADS is a pan-European corporation that employs over 140 000 people and generated revenues of nearly €57 billion last year. It is a fascinating company for many reasons; its governance with diverse political interests, the strategic importance of the aeronautical industry and the very international structure of the organization. I am very grateful to Tom Enders and his team at EADS for a very open discussion I had.
In this three part interview, German-born Enders talks about the day to day challenges of running such a complex company, how strategy can be hampered by politics and gives some advice to young graduates beginning their careers. Continue reading