When legacy carriers converge with low-cost carriers: Exploring the fusion of European airline business models through a case-based analysis

2009 ◽  
Vol 15 (6) ◽  
pp. 287-293 ◽  
Author(s):  
David Jarach ◽  
Fabrizio Zerbini ◽  
Giulia Miniero
Keyword(s):  
Business Models ◽  
Low Cost ◽  
Low Cost Carriers ◽  
Case Based

Changing Business Models: How Traditional Airlines Address the Challenge of Low Cost Carriers

2012 ◽  
Vol 2012 (1) ◽  
pp. 12458
Author(s):  
Knut Stefan Garrit Lange ◽  
Mike Geppert ◽  
Ayse Saka ◽  
Florian Becker-Ritterspach
Keyword(s):  
Business Models ◽  
Low Cost ◽  
Low Cost Carriers

scholarly journals Low-Cost Carriers – Business Model Development

2015 ◽  
Vol 3 (1) ◽  
pp. 1-5
Author(s):  
Antonín Kazda ◽  
◽  
Mária Mrázová
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Model Development ◽  
Aviation Industry ◽  
Historical Evolution ◽  
Financial Benefits ◽  
Low Cost Carriers ◽  
Business Model Development

This paper deals with low-cost airline business model that has overwhelmingly been the favoured mode of the airline. Fast-changing aviation industry forces low-cost carriers to transform their initial business model and therefore, author stresses further opportunities for the expansion of these models to another direction with more concentration on customer ´s needs as well as company´s operational and financial benefits. One of the most important partial results is analysis of existing low-cost carrier’s business models, describe their historical evolution and propose future modifications to stay competitive and profitable.

scholarly journals The Role of e-Commerce in the Success of Low-cost Carriers

2018 ◽  
Vol 65 (4) ◽  
pp. 407-425
Author(s):  
Marco Ginanneschi ◽  
Pietro Piu
Keyword(s):  
Business Models ◽  
Low Cost ◽  
Civil Aviation ◽  
Future Research ◽  
Distinctive Features ◽  
Italian Market ◽  
Starting Point ◽  
Low Cost Carriers ◽  
Definition Of

Abstract This research aims to answer the question if e-commerce favoured in a special way the growth of low-cost carriers within the civil aviation market. After defining low-cost and traditional carriers’ business models, data on transported passengers were collected for three countries (Italy, Germany and Spain) and confronted with the number of e-consumers. Despite a significant correlation in all the three markets, only in Italy our hypothesis has been supported by Granger causality, and the regression analysis allows to forecast a future characterized by a growing dominance of LCCs. Although the definition of an econometric model will require further studies, the distinctive features of the Italian market might represent a starting point for future research on the complex relationship between e-commerce and air transport.

scholarly journals The Revenue and Cost of the Airline Company

2018 ◽  
Vol 3 (2) ◽  
pp. 134
Author(s):  
Peng Qin
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Asia Pacific ◽  
Service Network ◽  
Fuel Price ◽  
Low Cost Carriers ◽  
Air Pollutions ◽  
Human Cost ◽  
The Government

<p><em>The airline industry is characterized by a number of business models with the most prominent being the Full Service Network Carriers (FSNC) and Low Cost Carriers (LCC) models. The main difference between full service network carriers and low cost carriers is how the airline companies operation their revenue and cost.</em></p><p><em>The advanced developments in telecommunications, air pollutions and the competition of high rail are three new challenges for the airline industry globally while an increasing passengers and the government policies are two big issues for Asia/Pacific regional airline companies. The fuel price and human-related costs are two big issues affecting the company’s cost. Code-sharing and advertising are two possibly ways in increasing company’s revenue, cutting down the fuel cost, advertising costs, controlling the human cost and cooperating with airports are four possibly ways in reducing company’s cost.</em></p>

scholarly journals IMPACT OF AIRLINE BUSINESS MODELS, MARKET SEGMENTS AND GEOGRAPHICAL REGIONS ON AIRCRAFT CABIN CONFIGURATIONS

2019 ◽  
Vol 10 (1) ◽  
pp. 1-38
Author(s):  
Oluwaferanmi Oguntona ◽  
Kay Ploetner ◽  
Marcia Urban ◽  
Raoul Rothfeld ◽  
Mirko Hornung
Keyword(s):  
Business Models ◽  
Statistical Tests ◽  
Low Cost ◽  
Operating Cost ◽  
Market Segments ◽  
Aircraft Cabin ◽  
Geographical Regions ◽  
Average Maximum ◽  
Low Cost Carriers ◽  
The Impact

Besides the significance of estimating aircraft seat capacity for airline operating cost and yield estimation as well as for the conceptual design of aircraft, airline fleet planning requires an understanding of aircraft cabin configuration. This paper presents the impact of airline business models, market segments in terms of flight distances, and geographical regions on aircraft cabin configuration, i.e. aircraft seat capacities and installed seats per cabin class. Using the historical databases of global low-cost carriers and airline flight schedules between 2000 and 2016, two ABM clusters – full-service network carriers (FSNCs) and low-cost carriers (LCCs) - were developed, while using seven already-developed passenger-aircraft clusters. Focusing on the jet commuter (JC), narrow-body (NB) and long-range (LR) aircraft clusters, studies were conducted on the historical development of aircraft cluster seat capacities at different abstraction levels: global, airline business model, intra- and inter-regional flight distances, as well as a combination of ABM and (inter)regional flights. Selected results were further analysed using statistical tests on the mean and regression analysis. The analysis results show that LCCs use aircraft that have less average scheduled and less average maximum possible seats than FSNCs. Specifically, FSNCs use significantly bigger aircraft types in LR cluster than LCCs, while LCCs use significantly bigger aircraft types in JC cluster than FSNCs. Furthermore, average cabin utilisation of aircraft clusters scheduled by LCCs are significantly higher than average cabin utilisation scheduled by FSNCs. With increasing distance, average cabin utilisation also significantly reduces.

scholarly journals The Viability of Long-Haul, Low Cost Business Models

2011 ◽  
Vol 2 (1) ◽  
pp. 69-91 ◽  
Author(s):  
Mauricio Emboaba Moreira ◽  
John O’Connell ◽  
George Williams
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Operating Cost ◽  
Aviation Industry ◽  
Cost Advantage ◽  
Low Cost Carriers ◽  
The World ◽  
Cost Simulation ◽  
Cost Differences

Recent events have confirmed the concerns that many within the aviation industry have held about the viability of the low cost business model for long-haul operations. This paper begins by reviewing the operating cost differences between low cost carriers (LCC) and legacy airlines in different regions of the world. This is followed by a summary of the various cost advantages of low cost carriers operating in short-haul markets. The main focus of the work, however, is a cost simulation involving the use of a Boeing 767-300 by both a LCC and a legacy carrier under varying operating assumptions. The research demonstrates that in none of the cases cited is the LCC cost advantage greater than 10%.

scholarly journals Airline Business Models and Networks: Regulation, Competition and Evolution in Aviation Markets

2006 ◽  
Vol 5 (4) ◽  
Author(s):  
David Gillen
Keyword(s):  
Network Structure ◽  
Competition Policy ◽  
Business Models ◽  
Low Cost ◽  
Business Strategies ◽  
Aviation Industry ◽  
Structure Stability ◽  
Hub And Spoke ◽  
Model Following ◽  
Low Cost Carriers

This paper examines the evolution of airline business models and network structure decisions in the passenger aviation industry. The paper reviews the growth of hub-and-spoke networks as the dominant business model following deregulation in the latter part of the 20th century, followed by the emergence of low cost carriers as a global phenomenon at the end of the century. The paper highlights the link between airline business strategies and network structures, and examines the resulting competition between divergent network structure business models. In this context, we discuss issues of market structure stability and the role played by competition policy.

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