Navigating Through Turbulent Economic Times: The Importance of Scenario Planning

The severe economic turbulence the airline industry has faced predates even events of the past decade that have significantly impacted it, such as the terrorist attacks of September 11, 2001, and the worldwide recession of 2008. Business strategists have recommended that business leaders accept economic upheaval as a normal part of the business cycle. The author argues that airport managers must be able to quickly react to upheaval by establishing early warning systems for economic turbulence prediction; developing plans for event mitigation; and implementing these plans as warranted. Three key steps are involved in scenario analysis: consideration of likely scenarios or dramatic events for which there should be contingency development; establishment of key performance indicators or metrics to serve as early warnings when there needs to be implementation of a particular strategy; and development and implementation of these strategies. Strengths, weaknesses, opportunities, and threats (SWOT) analysis can provide useful data and information when developing possible contingencies. The author outlines strategy development tools, and argues that now is the time for strategic plans to be augmented with careful analysis of possible scenarios.

Language

  • English

Media Info

  • Media Type: Print
  • Pagination: pp 28-29
  • Serial:
    • Airport Magazine
    • Volume: 21
    • Issue Number: 7
    • Publisher: AAAE Service Corporation, Incorporated
    • ISSN: 0744-5326

Subject/Index Terms

Filing Info

  • Accession Number: 01150662
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Feb 3 2010 2:54PM