- The aviation industry was highly competitive in 1980, with AN holding 60% of the domestic market share in Britain. - AN was privatized by the British government in the mid-1980s and underwent restructuring and downsizing. - A recession in Europe in the late 1980s/early 1990s led AN to adopt a low-cost strategy focused on cost reduction. This strategy failed and led to a 7% drop in passengers. - A new CEO in 2000 developed a new "added-value" strategy and re-engineered the company, launching discounted brands and reorganizing management structures.

2. • Its is an aviation industry
• In 1980,
– civil aviation market was highly competitive.
– AN’s share of domestic market was 60%.
• Middle 1980
– AN was privatized by Britain's Conservative Government.
– Preparing to restructuring and downsizing of assets and
workforce.
– Plan and implement new business and HRM strategy.
– Pressure generated by economic recession in Europe.
Background

3. • Recession Period
– Adopting a low cost competitive strategy.
– New strategy were formed .
– Strategies was focused to have cost reduction and cost
minimization in areas like service, marketing and
advertising.
– The above strategy failed and that lead to slump of 7% of
passengers.
– New CEO ,Clive Warren was appointed in 2000
– CEO developed a business strategy i.e “added- value”
strategy.

4. • In 2002
– A Catastrophic happened
– It causes loss of more than 1,00,000 airline jobs.
– Competition between AN, Hop Jet Airlines and Tango
Airlines.
– New Competitive and HR Strategies were formed.

5. •
•
•
•
Prioritized high customer service
Re-engineered the company
Launch a discounted airline
Management structure was re-launched.
Corporate
Strategy
North
America
Pacific
India
Europe
Domestic
New Competitive
Strategy

6. • Each group will be headed by a general manger who
give authority over the development of the business.
• New brand names were developed & new uniforms
were introduced for the cabin crew & point of service.
• The company focuses on the new program “customer
– first” that highlights the interface between the
employee & the customer.
• Their mainline business are congruent
with HR strategies that emphasis on
employee empowerment & commitment.

7. Corporate
Level
• Differentiation competitive strategy
• Corporate values recognizing the contribution of Air National
employees
• Effective voice for human resources at the strategy table
HR Policy
Level
• Priority given to security of employment
• Investment in workplace learning
• Competitive & equitable pay policies
Workplace
Level
• Broad task design & self – managed teams
• Emphasis on employee empowerment & self – accountability
• Climate of cooperation, commitment & trust
Key Strategies of Air
National

8. • Demarcation between the craft groups were removed
& staff were organized into teams of multi skilled
operatives & team leaders.
• Air National institute a series of customer service
training seminars & invested in T & D
• They develop a strategic partnership with unions.
• Profit related pay system was launched.
•
Major training programs were designed on
the importance of trust, motivation &
visionary leadership.

9. • Air National launched GoJet product in Nov,2002.
• The objective was to take advantage of the dramatic
shift by European & North American passengers
towards discount airlines.
• GoJet planes had more seats & no business class
section, that allowed additional 20 passengers.
GoJet competitive & HR
strategy

10. • The cost will be 20% less than the Air National
comparable mainline flights.
• The wages of the GoJet employees were les than
their counter parts at Air National.
• Air National has been transformed by re-engineering.

11. • Air National has been transformed by re-engineering.
• GoJet was launched to have a competitive advantage
in the market.
• Company focuses on program “customer – first”
• Organization structure was redesigned.
• T & D programmes were designed.
• Customer service seminars were taken.
Key Takeaways