scholarly journals Hub-And-Spoke Airlines Versus Low-Cost Airlines And Price Discrimination

Author(s):  
Recai Aydin ◽  
Roger Morefield

<p class="MsoBodyText" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-size: 10pt; mso-bidi-font-weight: bold;"><span style="font-family: Times New Roman;">The purpose of this study is to examine the impact of the continuing trend in the U.S. Airline industry away from hub-and-spoke (network) airlines and toward low-cost airlines. The model of this study examines the level of success which the network carriers may experience by using market segmentation and price discrimination to sustain profitability in the face of the growth in market share held by low-cost carrier airlines. </span></span></p>

2011 ◽  
Vol 10 (1) ◽  
pp. 37
Author(s):  
Bogdan Daraban

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none; tab-stops: 6.0in; mso-layout-grid-align: none;" class="MsoNormal"><span style="font-family: Times New Roman;"><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Over the past twenty years the US airline industry has been marked by the intense competition between the Low-Cost Carriers (LCCs) and the Full-Service Carrier (FSCs). The fundamental differences between the two business models are reflected in considerable cost advantages of the LCCs. In this paper, I use a set of model specific metrics to investigate whether the competitive process has led to convergence in some of the key features of the competing models. I conclude that despite some evidence of convergence along certain dimensions, the LCCs </span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">are not ready to abandon the core LCC model.</span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-font-family: Calibri; mso-bidi-font-style: italic; mso-fareast-theme-font: minor-latin;"></span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>


Author(s):  
James D. Dana ◽  
David A. Schmitt

Provides an overview of the domestic airline industry. Offers details on industry structure and performance necessary for basic industry analysis (or five forces analysis). Also emphasizes cost and benefit drivers, especially hub-and-spoke vs. point-to-point service and sources of differentiation.


Subject Outlook for Tanzania's new administration. Significance In his first two months in office, President John Magufuli has been quick to tackle corruption, address falling tax revenues and improve governance. Other economic difficulties still confront his new administration, and he faces the challenge of establishing his authority, which will be vital in securing reforms in the face of vested interests and in addressing the political crisis in Zanzibar. Impacts Low cost carrier Fastjet's new routes and lower fares will help boost intra-East Africa travel, helping regional economic integration. Political cleavages, especially in Zanzibar, could provide inroads for low-level Islamist militant activity, posing moderate threats. Unlike Kenya, where risks are greater, this is unlikely to deter tourism; the sector will also benefit from higher budget allocations. Magafuli's endorsement of the African Union's proposed peacekeeping deployment in Burundi may encourage regional states to back the plan.


Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.


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