Advances in Consumer Research
Issue 10 : 145-172
Original Article
Operational Slack as a Strategic Capability: The Role of Service Reliability in Enhancing Financial Resilience in the Airline Industry
Loading Image...
 ,
Loading Image...
 ,
Loading Image...
1
Department of Aviation Management, School of Aviation, Logistics and Tourism Management, Galgotias University, Greater Noida, Uttar Pradesh, India
2
Department of Finance, School of Management, Galgotias University, Greater Noida, Uttar Pradesh, India.
3
Department of Healthcare Management (Interdisciplinary), School of Business, Galgotias University, Greater Noida, Uttar Pradesh, India
Abstract

The airline industry is characterized by substantial operational uncertainty arising from demand fluctuations, weather disruptions, technical failures, labour constraints, fuel-price volatility, air-traffic congestion, and unexpected capacity shocks. In such an environment, excessive resource efficiency may reduce an airline’s ability to absorb operational disturbances, while strategically maintained operational slack may provide the flexibility required to preserve service continuity and financial stability. This study empirically investigates operational slack as a strategic capability and examines the mediating role of service reliability in strengthening financial resilience among airlines. Using a panel dataset of airlines covering multiple operating periods, the study develops quantitative measures of operational slack, service reliability, and financial resilience and applies descriptive statistics, correlation analysis, panel regression, robustness tests, and mediation analysis to evaluate the proposed relationships. Operational slack is measured through selected indicators of available capacity, workforce flexibility, fleet and maintenance resources, and other operational buffers, while service reliability is assessed using indicators such as flight completion, punctuality, schedule consistency, and disruption management. Financial resilience is evaluated through indicators reflecting profitability stability, liquidity, cash-flow strength, and the ability to withstand adverse operating conditions. The empirical framework tests whether operational slack directly improves service reliability and whether improved reliability subsequently enhances financial resilience. Particular attention is given to the indirect effect of operational slack through service reliability. The study is expected to demonstrate that appropriately calibrated operational slack can function as a strategic resource rather than merely representing excess cost. By empirically connecting operational resources, service outcomes, and financial resilience, the study contributes to airline operations and strategic management literature and provides evidence for resource-allocation decisions under uncertain operating conditions.

Keywords
Recommended Articles
Original Article
A Comprehensive Review Of The Influence Of Social Media Marketing On Consumer Buying Behaviour: A Systematic And Bibliometric Analysis
Original Article
AI Adoption affects Work Stress: A Bibliometric Review on Hospitality Industry”
Original Article
Predictive Workforce Intelligence: An AI-Based Framework for Employee Performance Assessment Using Deep Learning and Structured Workforce Data
Original Article
Life Cycle Carbon Mitigation Potential of Decentralized Solar Energy Systems in Rural UP: An Empirical Assessment
Loading Image...
Volume 3, Issue 10
Citations
14 Views
11 Downloads
Share this article
© Copyright Advances in Consumer Research