An effective response smoldering crisis and capacity cost management

Thomas, Charles (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Connolly, Carol J.

When risk mitigation fails, a company is often faced with one or more crisis events. Crisis can take many forms. A type of crisis, a smoldering crisis, can continue gaining momentum over time, slowly eroding the future success of an organization. This paper uses archival case analysis to look at how two airlines — Southwest Airlines and US Airways — responded to the smoldering crisis of loss of profitability and ridership in their short - haul mar kets over the period from the early 1990s to mid - 2000s. These two companies made very different responses to the smoldering crisis, with US Airways choosing a structural response, triggering a cascade of smoldering and acute crisis, while Southwest emphas ized executional strategic adjustments that allowed it to maintain profitability as it transitioned to new operating conditions.

Type de conférence:
full paper
Economie et Services
EHL Ecole hôtelière de Lausanne
Adresse bibliogr.:
Philadelphia, USA, 23-25 April 2015
Philadelphia, USA
23-25 April 2015
41 p.
Publié dans
Proceedings of the American Accounting Association Mid-Atlantic Region Meeting 2015
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 Notice créée le 2015-10-29, modifiée le 2018-08-31

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