TY - JOUR
T1 - Organizational learning, operating costs and airline consolidation policy in the Chinese airline industry
AU - CHOW, Kong Wing, Clement
AU - TSUI, Wai Hong Kan
PY - 2017/8
Y1 - 2017/8
N2 - 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.
AB - 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.
KW - Airline mergers and acquisitions
KW - Operating costs
KW - Operating experience
KW - Organizational learning
KW - Post-acquisition periods
KW - Post-merger periods
UR - https://www.scopus.com/inward/record.uri?eid=2-s2.0-85021788289&doi=10.1016%2fj.jairtraman.2017.06.018&partnerID=40&md5=68ddeb979cd13603f840bcaf2ea3bb59
U2 - 10.1016/j.jairtraman.2017.06.018
DO - 10.1016/j.jairtraman.2017.06.018
M3 - Journal Article (refereed)
SN - 0969-6997
VL - 63
SP - 108
EP - 118
JO - Journal of Air Transport Management
JF - Journal of Air Transport Management
ER -