Corporate Collapse and IT Governance within the Australian Airlines Industry

Abstract

The purpose of this case study is to highlight IS/IT governance arrangements in multi-layered organisations for the purpose of advancing knowledge about the effectiveness of such arrangements when, as in this case, the holding company collapses. The Kendell case is an example of a smaller entity with its own IS/IT governance embedded in a larger holding company with separate governance practices. Such arrangements raise questions relating to issues such as what most appropriate style and form of governance is required, whether benefits may be derived from multi-tiered governance systems for corporate groups, and if synergies can be created. The insistence of the Kendell IT manager and management team on autonomy in Kendell’s IS/IT governance proved to be an integral element in its corporate resilience during the collapse of the holding company.