Developing a strategic framework of analysis for air transport management

This paper looks at the development and use of a strategic level framework of analysis tailored to air transportation management studies. Generic strategic frameworks designed for industry level analysis do not always capture the core factors and forces impacting and shaping the contemporary global aviation industry. The proposed strategic framework covers three key categories; namely politics, economics and geography, resulting in the acronym PEG. Three of the most commonly employed generic strategic frameworks in management research, including air transport management, are SWOT, PEST (PESTE/PESTEL) and Porter’s five forces. However, these do not readily encourage all three of the PEG categories, with geography not explicitly featuring in any of these generic frameworks. Where an airline is based in the world matters in global aviation as the industry is underpinned by the bilateral system – a bundle of restrictions and limitations covering airline nationality/citizenship, ownership, control and home base requirements. The paper concludes by contending that PEG is an easy to remember and apply strategic framework for air transportation management studies and builds on the strengths and possibilities of generic strategic frameworks, but in a manner which helps to ensure that key industry-specific drivers and forces are brought to the fore. Figuratively speaking, the PEG strategic framework is situated at the center of the global aviation industry, rather than having to be retrofitted or modified to more closely align with the sector.