Leadership and Crisis Management at Continental and Lufthansa: Critical Success Factors for Airline Executives

The grounded theory study about leadership and crisis management at Continental Airlines and Lufthansa German Airlines was conducted with the intent to derive a new theory concerning effective leadership in the airline industry. Additionally, one developed a management system that might allow airline executives to lead their organizations in an efficient way even when facing adverse circumstances. The goal of the study was to identify suitable leadership approaches, critical success factors, and skill sets that are of importance for airline executives in the context of the global nature of the industry and its challenging, competitive environment. Conducting interviews with former executives from both carriers and with C-level managers from airlines unaffiliated with Lufthansa or Continental provided insights concerning adequate methods to lead airlines that experience operational, organizational, or financial crises. One of the findings of the study , which was conducted by evaluating successful crisis management programs of Lufthansa and Continental Airlines is the need to integrate both core and enabling technologies with a leadership approach that allows organizations to outperform their competitors and, even more important, to maintain their leading position. The research project revealed further that moving through an adaptive cycle, which allows for a continuous adjustment to an organization's environment, is a key criterion for success in the airline industry. The finding that leading an airline by integrating one's vision and objectives with the organization's strategy, structure, and business processes to avoid a goal-path dissonance was therefore determined to be critical for efficient, sustainable, and thus successful airline leadership.