The evolution of lateral hiring and skill formation in the global airline industry, 1940–2010

Although lateral hiring (LH) has increasingly come to characterise today’s global labour market, past studies have largely overlooked how the practice unfolds as industry structure evolves. This article draws on the human capital theory to examine the evolution of LH and skills formations in the global airline industry from 1940–2010. This historical narrative identifies and distinguishes four distinct phases (i.e. the golden, human-factor, embryonic stage and ‘war for talent') which shed light on the changes in the industry facilitated by deregulation and liberalisation. The phases also elucidate the processes and factors that precipitate the fundamental shift from government-funded to employer-funded and then to largely employee-funded training that has emerged to characterise the industry. The implications and contributions to management history are examined.