Title

Organizational learning, operating costs and airline consolidation policy in the Chinese airline industry

Document Type

Journal article

Source Publication

Journal of Air Transport Management

Publication Date

8-1-2017

Volume

63

First Page

108

Last Page

118

Publisher

Elsevier Ltd

Keywords

Airline mergers and acquisitions, Operating costs, Operating experience, Organizational learning, Post-acquisition periods, Post-merger periods

Abstract

This study investigated and reviewed organizational learning in the Chinese airline industry, which is dominated by state-owned or state-controlled airlines. This empirical research focused on the extensive scale of airline mergers and acquisitions among 12 Chinese airlines for the period of 1996–2014. This research aims to make a contribution towards addressing the general lack of academic reflection on the impact of organizational learning on airline performance during and after the completion of mergers and acquisitions. The empirical findings of this paper suggested that there was, in general, organizational learning experienced by Chinese airlines from their prior operating experience in improving operating costs. However, airline mergers in 2001/02 increased airlines' average operating costs, as most state-owned airlines are notorious for poor cost management. Significantly, the performance improvement among Chinese airlines was found during the post-merger periods in this study, and the increase in Chinese airlines’ operating costs during the post-acquisition periods due to the limited integration of 2010 acquisition compared with the 2001/02 mergers.

DOI

10.1016/j.jairtraman.2017.06.018

Print ISSN

09696997

E-ISSN

18732089

Publisher Statement

Copyright © 2017 Elsevier Ltd. Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Chow, C. K. W., & Tsui, W. H. K. (2017). Organizational learning, operating costs and airline consolidation policy in the Chinese airline industry. Journal of Air Transport Management, 63, 108-118. doi: 10.1016/j.jairtraman.2017.06.018

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