INSOURCING AS A KEY FACTOR OF COMPETITIVENESS IN AVIATION

Abstract

One of the most rapidly growing sectors is air transport. The global crisis has accelerated the development of air transport. It is speeding up the segmentation of the market, especially in terms of prices. The aim of this paper, based on a content analysis and literature research, is to highlight the significance of insourcing in aviation. Insourcing is particularly topical in the cases when outsourcing is inappropriate and is not worthwhile for an organization. This paper aims at emphasizing the importance of insourcing as an important competitive factor not only for low-cost carriers. There are two basic approaches to the business strategy, namely, the low-cost model and the traditional carriers' model. In the case of low-cost carriers, insourcing is frequently used due to cost savings, as it is shown in the article. On the other hand, it also provides all information on customers, along with the knowledge of how to ensure the elimination of daily operations complications. Significant cost savings lie in one's own online sales without any intermediary and marketing without mediators, which could be an important source of additional income. What could be seen in Europe is the growth of low-cost carriers thanks to insourcing, which helps them to be more competitive and cheaper for customers. This is evidenced by secondary analysis research. The results of the research point out that insourcing is one of the key factors of competitiveness with low-cost carriers.