Global airline alliances, value propositions, and strategic misdirection at Swissair, a clinical study: 1994?2001

In the late 1970s the aviation industry in the USA underwent a period of deregulation. By the mid-1980s Europe also began feeling deregulatory pressure. This paper presents a brief history of the forces that led to deregulation and the challenges that were faced by all airlines during that time period. A detailed analysis of Swissair's reaction to deregulation is also provided. This analysis focuses on the strategies, value propositions and business models that Swissair employed. The paper concludes by suggesting the course of action that should have been taken by Swissair.