Coordinated market economy/liberal employment relations: low costcompetition in the German aviation industry

摘要

This paper examines the German low cost airline industry by analysing how the growthof low cost competition has influenced the industry's pattern of employment relations.The paper highlights the role of Lufthansa, as both the traditional flag carrier and theleading site of employment relations within the German aviation sector. The paperexplains how Lufthansa has positioned itself to face low cost competition by, amongother initiatives, creating its own low cost subsidiary (Germanwings). Competitivepressures, stemming from the liberalization of European aviation and demand for lowcost travel, have produced a marked divergence in this industry from the typical patternof German employment relations. The paper explains this divergence by situating thecase study within the varieties of capitalism literature.