An Indian Civilizational Perspective

A new organizational model for airlines

McKinsey Quarterly proposes a new Organizational Model for the airlines to succeed!

I feel Southwest is probably best suited to handle the future threat in the AIrlines sector.

Here are the recommendations:

* Over the past decade, traditional airlines have responded to heightened competition by diversifying, which makes them more complicated to manage.
* A good way to make these diversified companies more agile and competitive is to adopt a new organizational model: semiautonomous business units that are responsible for their own profitability.
* The transition is tricky, however, and companies that get it wrong will miss out on the advantages of the new organization.
* To get the greatest benefit from the new model and maximize overall profitability, a company must balance the autonomy of the business units with the need to coordinate some of their activities.

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