Key success factors of airline-within-airline model: A qualitative study using the examples of Qantas, Singapore, and Lufthansa Airlines

Aviation has improved in all its dimensions with existing and new airline companies, and the growing competition has led airline companies to develop new strategies. The aviation industry has increasing potential in the LCC business model which is increasing the utilization of selected strategic decisions and threatening the sustainability of a number of legacy airlines. The AWA strategy is efficient as a useful strategic management tool for airlines to compete with LCCs and also to provide additional flexibility during dynamic changes and industry fluctuations. The response of legacy airlines to LCC challenges in the aviation industry is to create an AWA. This research has analyzed the success factors of this strategy, especially for a multi-brand strategy. The AWA strategy should be well-defined for group as a whole and also each brand under the same family. For this reason, the AWA model is a strategic response by FSCs to compete with LCCs. The AWA model enables FSCs to pursue a cost leadership or focus strategy by operating a portfolio of airlines in various market segments. After creating new AWA under the same group, it has been harder to manage dual- or multi-branding and also efficiency in terms of finance and productivity. For this reason, dynamic KPIs detection which are suitable with selected strategies and analysis management are critical for a success formula. Autonomy, network structure, commercial and marketing strategies, product and services, cost efficiency, revenue opportunities, flexibility, agile management, digitalization, human resources policies, union restrictions can be defined as success factors of the AWA strategy. On the other hand, cannibalization and competition can be named as the main reasons for the failure of this business model.