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Case Analysis on Astro Airlines
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Submitted to: Assist. Prof. Jyoti Regmi Adhikari

Amit (14325) and Jay (14335)

Amit (14325)

Jay (14335)

Synopsis:
This case is all about failing to manage success after successful beginning. The case deals with
the positive and negative aspects of the Charismatic leadership. This case revolves around the
leader of Astro Airlines Arthur Burton who could not maintain the growth of its company. The
case is divided into two parts first highlighting the success of Astro airline in spite of the rogue
market. The other part deals with how a company that met success so fast fell apart because of its
inability to manage its own success. When the charisma of a leader takes the shape of arrogance
and inflexibility the team is destined to break and failure is unstoppable. Arthur Burton sets up a
team of motivated staffs who share his vision and take the venture to immediate success.
However he is so much blinded by the success he fails to implement necessary changes and
ultimately the company files for bankruptcy.
Issues:
1. Assess Brutons leadership behaviour and analyse whether Bruton was a successful
leader at the start of the company or not?
2. Why charismatic leadership approach that had worked so well for Burton in the initial
phase would later backfire and lead the company towards bankruptcy and also assess
where did Bruton fail as a leader?
Analysis
1. Arthur Burton leadership behavior took on many characteristics of the attribution theory
of charismatic leadership. Burton had a clear vision which was quite different than the
mainstream thinking of the day. It involved two elements. First, Astro Airlines would
offer Low-cost, no-frills service to customers who could not afford to fly. Second, the
company would offer a different way of having employees work together that would
result in more creativity and improved productivity. Many employees regarded Burton as
an inspirational leader because he was dynamic, gave emotionally stirring speeches, and
enthusiastically taught and affirmed his visit. The book did not specify that he himself
sacrificed for the good of the company. It is assumed Burton did because of his three
levels of management organization emphasize equality, informality, participative
leadership, and self-management. Burton was confident about his business model. In the

Amit (14325)

Jay (14335)

beginning, many employees bought into his enthusiasm and confidence that they
eventually achieved success and passenger volume expanded rapidly.

2. Charismatic leaderhip has its own disadvantages too. In the initial phase, when Burtons
leadership brought unprecedented success in his company, his employees and staffs
assigned him a charisma. The truth about charismatic leadership is that it doesnt have a
domain of functionality or results, instead charisma is felt and is actually assigned by
others. Burton was already a visionary and an emotionally intillegent person (his
speeches were evangelical). The success he brought to the company, added to the
evangelical he, immediately led his employees (followers) to assign him a charisma. In
the initial phase the charismatic leadership of Burton worked because his followers were
identified with his charisma- they trusted him, they thought their own vision aligned with
his, simple put, they were blinded by the light he bestowed and every rationale or logic
was outcasted (the heavy work load, the way managers were forbidden to dictate any
rules, executives having to answer their own phones and write their own letters- all of
these seemed very virtious.).
But charismatic leadership has a slight little problem- Charisma is very addictive in
nature; sooner or later the followers awake but the leader keeps on sleeping or dreaming.
The exact same thing happened in Astro airlines. Burton was very much identified with
his charisma and he was very much reluctant to give it up. He became delusional and
overconfident- his charisma diluted his judgement and he retreated to the fantasy that he
could solve anything, infact he thought the mere presence of him would solve anything.
Hence he assumed the post of the president by himself and refused to recruit a more
deserving candidate to the post.
The other thing Burton failed to do was institutionalize his charisma. By having a
institutional pattern he could have secured his charismatic leadership and even transfer it.
Charismatic leadership is generally very unstable in nature because this sort of leadership
excites the short-term neurosis of the followers (the reason why charismatic

Amit (14325)

Jay (14335)

leadershipis thought to be highly romanticized). Simply put, it is like falling in loveshort and sweet.
To summarize, Burton with his leadership approach had the following shortcomings:

Burton had a belief that the team has been success only because of him and the obsession

led him highly arrogant.

Dissatisfaction among employees with him and his belief. They were in awe of Burton
and believed in his business plan which eventually reduced opportunities to incorporate

good suggestions from them.

Like many charismatic leaders, he was locked in to his vision of the business plan and

was unable to adjust or listen to changes.

His confidence and optimism miscalculated the problems that were around the corner.
By saying that he was the founder and largest shareholder alienated many employees.