Qimeng Fang
Pronouns: he/him
Research Mentor(s): Weikun Yang
Research Mentor School/College/Department: Strategy / Business
Program:
Authors: Qimeng Fang
Session: Session 4: 1:40 pm – 2:30 pm
Poster: 72
Abstract
At the onset of Covid-19 pandemic, airlines were forced to drastically scale back their operations before rapidly recovering to pre-pandemic capacity to cope with a demand shock as travel recovered in 2021 and 2022. As perhaps the industry most affected by the Pandemic, airlines’ response to Covid-19 represents a case study of how companies must adapt their business models to cope with rapidly changing market conditions. This research analyzes the strategies used by legacy US passenger airlines in response to the Pandemic with a particular focus on how airlines utilized economies of scope between transporting passengers and cargo. Qualitative information such as scholarly articles, company press releases, and third-party reports and quantitative data from government agencies such as the Federal Aviation Administration (FAA) and Bureau of Transportation Statistics (BTS) are both used in this research. One key preliminary result is that airlines which embrace economies of scope emerged as the most dynamic and resilient in the face of downturns. Furthermore, airlines which quickly restructured their route networks tend to perform better amid ever-changing travel restrictions. This research contributes to current literature analyzing how firms adapted during the Covid-19 pandemic which may prove useful to economists and business researchers as a specific example of the importance of strategy. Furthermore, this research may offer valuable insights to airlines wishing to build a more robust and diversified business model.
