Low-Cost Carriers: The Pilots of the Aviation Industry in the Globalized World

2019 ◽  
Author(s):  
VISTASP IRANI
Keyword(s):  
Low Cost ◽  
Aviation Industry ◽  
Low Cost Carriers ◽  
Globalized World

Evaluating and Exploring Successful Disruptive Innovation in the Aviation Industry From the Perspective of Consumers

2021 ◽  
Vol 13 (4) ◽  
pp. 105-119
Author(s):  
Gang-Hoon Seo
Keyword(s):  
Word Of Mouth ◽  
Low Cost ◽  
Disruptive Innovation ◽  
Point Of View ◽  
Aviation Industry ◽  
Basic Service ◽  
Low Cost Carriers ◽  
Content Analyses ◽  
Southwest Airlines

Since Southwest Airlines' disruptive innovation was introduced, low-cost carriers (LCCs) have had a prominent impact on the aviation industry. Therefore, considerable attention has been paid to the LCC model. However, it is still not clear whether it is a successful disruptive innovation, or what factors and differentiation points for successful LCC service exist from the passengers' perspective. As this study's methodology, quantitative and qualitative content analyses are conducted using the word-of-mouth data of 1,854 passengers of 20 airlines. This study found that the LCC model is perceived as a successful disruptive innovation from the passengers' point of view. For successful LCC service, LC airlines should offer higher quality services than passengers' expectations using basic service elements. Also, good staff characteristics, leaving a professional impression, and providing good optional services could play a role as differentiation tools.

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.

Impacton Operational Efficiency Of Threemajor Private Airlines With Respect To Indian Aviation Industry

2019 ◽  
Vol 118 (2) ◽  
pp. 108-123
Author(s):  
Sreelakshmi. G ◽  
. P. Balasubramanian
Keyword(s):  
Economic Growth ◽  
Financial Performance ◽  
Low Cost ◽  
Operational Efficiency ◽  
Aviation Industry ◽  
Data Envelopment ◽  
Ratio Analysis ◽  
Output Factor ◽  
Low Cost Carriers ◽  
Efficiency Data

The Aviation industry is one of the largest industries that is contributing to the economic growth of a nation.This industry has gone through various stages like de-regulation, privatization,emergence of Low Cost Carriers etc. This paper focuses on analyzing the financial performance and operational efficiency (te) of three major private airlines in India namely Indigo Airlines, Jet Airways and Spice Jet.For analysing the financial performance the technique of ratio analysis has been used and for analyzing the operational efficiency Data Envelopment Analysis (DEA) has been used. This study has used VRS model of DEA by taking into account two input factors and one output factor. On the basis of the factors considered it has been observed that operational efficiency of Jet Airways is better compared to other two airlines.

scholarly journals DETERMINANTS OF CUSTOMER LOYALTY: A FIELD RESEARCH IN AVIATION INDUSTRY

2018 ◽  
Vol 9 (1) ◽  
pp. 16-28
Author(s):  
Nuriye Güreş ◽  
Hilal İnan ◽  
Seda Arslan
Keyword(s):  
Structural Equation ◽  
Low Cost ◽  
Perceived Value ◽  
Field Research ◽  
Aviation Industry ◽  
Passenger Traffic ◽  
Turkish Government ◽  
Low Cost Carriers ◽  
Travel Industry ◽  
Ticket Prices

The encouragements of Turkish government for aviation industry in 2003 have paved the way for private airlines to enter the market. Through the increasing number of airlines and the rivalry between them, especially low-cost carriers have started to give transportation service with cheaper ticket prices. According to The International Air Transportation Association (IATA) estimates, the number of passengers travelling with airlines around the world will reach to 3.8 billion passengers in 2020 and low-cost carriers’ flight networks and numbers especially in developing countries as Turkey will continue to gain momentum. When considering the increased passenger traffic in Turkish travel industry, providing the passenger loyalty for Turkish low-cost carriers has also become obligatory for these companies’ survival in the longrun. In this study, determinants of passengers’ loyalty as perceived value and trust have been searched. For this purpose, 350 questionnaires were applied to the passengers travelling with low-cost carriers at Hatay and Adana Airports in Turkey, 311 of which were analyzed after eliminating invalid ones. Structural equation modelling was applied for data analysis. According to the analysis results, perceived value and trust were identified as the important determinants of passenger loyalty.

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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