Here we go again...the Permanently Failing Organization: An application to the airline industry in Eastern Europe

Yusaf Akbar*, Adél Németh, Hans Martin Niemeier

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    Abstract (may include machine translation)

    This paper analyzes the performance of the Central and Eastern Europe airline industry through the lens of the "Permanently Failing Organization" (PFO) framework. Based on elite interviews from management in the three airlines but also from other organizations within the industry, it confirms the salience of key theoretical features of the PFO framework by providing evidence for the persistence of short-term decision making; ongoing contradictions between articulated strategy and its poor or non existent implementation and frequently assiduous intervention by governments that rather than fostering decisive decision-making served to do the opposite. These factors contributed to reinforcing deeply held beliefs in the management that they would survive despite the obvious problems they have faced. External stakeholders - especially governments should reflect carefully on their role in fostering permanent failure.

    Original languageEnglish
    Pages (from-to)1-11
    Number of pages11
    JournalJournal of Air Transport Management
    Volume35
    DOIs
    StatePublished - Mar 2014

    Keywords

    • Entry and exit
    • Liberalization and deregulation
    • Permanently Failing Organizations

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