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Outsourcing for an airline: major elements of value chain

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A common issue that both service and manufacturing sector firms encounter is the opportunity to outsource one or more of their operations.

1. For an airline, which is in the service sector, describe some of the major elements of its value chain and which may be the most and least amenable to outsourcing. Explain your answer.

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Solution Summary

This solution discusses major elements of an airline value chain, and which are the most amenable, and the least amenable to outsourcing. It includes examples and links.

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The major elements of an airline value chain are:

-reservations
-check in
-baggage handling
-airplane repair
-catering
-customer communication
-in-flight service
-safety

The most amenable to outsourcing would be reservations, check in, baggage handling, repair, catering, and customer communication.

In fact, many airlines are ...

Solution provided by:
Sally Baldwin, Ed.D
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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