scholarly journals The impact of the COVID-19 pandemic on the business models of regular air carriers

2021 ◽  
Author(s):  
Marko Chovanculiak ◽  
◽  
Matúš Materna
Keyword(s):  
Business Model ◽  
Business Models ◽  
Air Transportation ◽  
Air Transport ◽  
Natural Activity ◽  
Individual Type ◽  
Transport Carrier ◽  
The Impact ◽  
Air Carriers ◽  
Model Characteristic

This paper analyzes the changing characteristics of air transportation business models due to the COVID-19 pandemic. These characterics differ with each kind of the air transport carrier. It was possible to observe the changes of the business models characteristics even sooner, during the hybridization. As regards the business models hybridization, it's given that with individual type of carriers it's rather natural activity, resulting from the need of increasing profits, reducting costs or simply the effort to successfully enter the different market. With the business model characteristic changes due to the pandemics it's rather about the forced changes triggered by the need to adapt to the current situation. Each air transport carrier bussiness model characteristics are introduced, followed up by the analysis of their changes. These changes were or are induced by the need to adapt or to completely change their behavior in the pandemic affected time. The analytical part of the paper provides easily understandable results of the air transport carrier’s behavior. It is possible to observe what the carriers are capable and willing to undertake in order to keep the customer. This paper ultimately introduces the forced changes, the air transport carriers had to accede in order to save the business from bankruptcy as well as how it would be possible to adapt their provided services in future.

scholarly journals Wpływ kryzysu na wielkość pasażerskiego ruchu lotniczego na świecie na podstawie wybranych przykładów

2011 ◽  
Vol 18 ◽  
pp. 129-138
Author(s):  
Renata Rettinger ◽  
Piotr Staszak
Keyword(s):  
Air Transportation ◽  
Air Transport ◽  
Global Trend ◽  
The World ◽  
Current Availability ◽  
The Moment ◽  
Distance Travel ◽  
The Impact ◽  
Air Carriers ◽  
Comparable Period

Recent years have witnessed a whole range of changes in the global economic system; the changes have largely resulted from crisis situations in global markets. Air transport is an element of the system that is very sensitive to any kinds of changes. Due to a difficult financial situation the sector is relatively quickly affected. The corporate representatives and individuals in situation of financial crisis can easily resign from air transportation, especially for short distance travel. The main purpose of the paper is to present changes in passenger’s air transport quantity in the largest airports of the world with respect to the selected air carriers. The first part of the article presents the size of passenger’s air transport in the airports with the highest number of passengers (Atlanta Hartsfield-Jackson, London Heathrow, Frankfurt International) in years 2007−2010, i.e. since the moment preceding the global trend of decrease in air transportation till now (in accordance with the current availability of statistic data). Next, the changes in passenger’s air transportation quantity for the selected air carriers operating in various parts of the world have been analyzed with respect to a comparable period of time. In the last part of the paper the authors tried to present the examples of the impact of crisis on particular air carriers as well as to discuss the attempts undertaken to restore the passenger’s transportation rates to the level preceding the crisis.

scholarly journals Trends and Prospects of the Development of the Global and National Air Transport Markets

2020 ◽  
pp. 99-109
Author(s):  
Sergiy Lytvynenko ◽  
Iryna Panasiuk
Keyword(s):  
Business Model ◽  
World Economy ◽  
Business Models ◽  
Low Cost ◽  
Air Transportation ◽  
Global Market ◽  
Air Transport ◽  
Aviation Industry ◽  
Market Expansion ◽  
The World

The article identified the preconditions for the development of the world economy which included the processes of globalization and internationalization. The role of air transport in the world economy is emphasized because its weight grows every year, because it provides the development of tourism, international programs and cooperation between individual regions of the world. There has been an increase in the number of multinational corporations, increasing the mobility of business passengers what is very important for the airlines. The critical analysis of scientific publications made it possible to state that in Ukraine and abroad the development of the air transportation market was studied by many scientists and their contribution to solving a number of scientific problems related to identifying prospects and opportunities for international and national air transportation markets as well as with the optimization of air carriers is important. However, it was found that insufficient research on recent trends and prospects for the development of global and national air transport markets is in the face of new challenges including the outbreak of coronavirus infection COVID-19. It was found that air passenger traffic in the global market has grown steadily in recent years by 7-8% every year and a quarter of sales depend on the regularity of air transportation of which 70% of this type of business determine the vectors of market expansion. The analysis of aviation accidents revealed that they have a very significant impact on the performance of the carrier whose aircraft suffered them. This applies to both reputational and purely financial losses. The problems with the Boeing 737 Max type also became a serious challenge for the aviation industry due to a number of incorrect design decisions of the world’s leading aviation concern and attempts to save on the training of pilots of this type of aircraft. It is noted that modern passengers are trying to minimize the time spent on travel, the trend of fragmentation of the holiday period is growing rapidly. As a result of the analysis of the domestic air transportation market, it was revealed that during 2019 there was an expansion of the market in general, as well as the activities of foreign airlines, travel from Ukraine to Europe and other parts of the world increased rapidly. A radical change in market trends was observed in mid-March 2020, when due to the spread of the COVID-19 coronavirus in the world, quarantine was introduced and regular flights were stopped. The national air carrier Ukraine International Airlines has declared a two-stage period of resumption of work after the end of quarantine. The authors found signs of hybridization of the airline’s business models at the first stage of the restart and the transition to the airline’s business model which has features of both point-to-point models and obvious features of the model of low-cost carriers. Whereas in the second stage the transition to a partial network model with low-cost models is most likely followed by the emergence of a new already stable hybrid business model based on network principles but with stable features of a low-cost airline.

scholarly journals Exploring a circular business model: Insights from the institutional theory perspective and the business model lens

2021 ◽  
pp. 146575032110555
Author(s):  
Ufuk Alpsahin Cullen
Keyword(s):  
Business Model ◽  
Business Models ◽  
Value Systems ◽  
Business Modelling ◽  
Environmental Value ◽  
Value Cocreation ◽  
Business Profitability ◽  
Paradigmatic Change ◽  
Underlying Mechanisms ◽  
The Impact

Circular entrepreneurship is becoming a new, promising reality, in the manner of needed radical paradigmatic change in the era of Anthropocene. Circular entrepreneurs intend to create social and environmental value while they build financially viable businesses. They are embedded in multiple institutionalised value systems that they are expected to adhere to. Those institutionalised systems provide circular entrepreneurs with different, in many cases, contradictory norms, values and guiding principles. Substantial amount of research has been done to date to examine the impact of institutions on entrepreneurial endeavours. And yet, research lacks sufficient insights into how circular entrepreneurs engage with the institutional structures in designing business models on a financially feasible ground while creating social and environmental value. To address this, this paper investigates how circular entrepreneurs respond to the value systems of surrounding institutions in business modelling and how two fundamental aspects of embeddedness, namely resource integration and value cocreation, are achieved within a circular business model that is coherent in itself and with the entrepreneur's ambitions. Both the institutional context and the institutional logics surrounding entrepreneurs are examined to comprehend the surrounding institutional systems more in-depth and extensively. By analysing a longitudinal in-depth case study, this article aims to develop better insights into circular business modelling and underlying mechanisms of embeddedness. The case is a born-circular small cidermaker in Cornwall (UK), namely Wasted Apple. The findings show that the circular entrepreneur is surrounded by dominant normative institutions forming the principles of business model design. circular entrepreneurs mark fidelity to the institutional norms to obtain a range of microcompetencies and to manage integrated hybrid tensions within the value creation system. And therefore, a circular business model is a more holistic and inclusive structure as compared to a typical conventional linear business model. And yet, paradoxically embeddedness facilitates business survival but hinders strategic business planning as well as business profitability and growth.

Digital Retail and How Customer-Centric Technology is Reshaping the Industry

2018 ◽  
pp. 1560-1580 ◽  
Author(s):  
Pablo Penas Franco
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Business Models ◽  
Customer Experience ◽  
Retail Industry ◽  
Brick And Mortar ◽  
Digital Disruption ◽  
Cloud Technologies ◽  
The Impact

This chapter explains the digital disruption that has occurred and is still happening in the retail industry. It explains the relative positions of the world's leading retailers Wal-Mart, Amazon and Alibaba and the business models of the two top online competitors. It focuses on the impact of SMAC (Social, Mobile, Analytics and Cloud) technologies and new retail trends enabled or boosted by technology such as omni-channel, customer experience, internet of things (IoT) and analytics, fulfillment and delivery. It deepens into IT and business model customer-centric design, the role of the customer and the store in the new digital retail and finishes with an assessment of ROI in retail digitization. The chapter concludes the fundamental IT-enabled changes of digital disruption are critical for all players, traditional brick-and-mortar retailers, pure online players and those with both an online and an offline presence.

An Exploratory Study of the Impact of the Internet of Things (IoT) on Business Model Innovation

2017 ◽  
pp. 423-440
Author(s):  
In Lee
Keyword(s):  
Business Model ◽  
Significant Relationship ◽  
Business Models ◽  
Implementation Strategies ◽  
Fortune 500 ◽  
Business Model Innovation ◽  
Adoption Rate ◽  
Iot Applications ◽  
Fortune 500 Companies ◽  
The Impact

This paper introduces IoT categories used to build smart enterprises and discusses how Fortune 500 companies may use various IoT applications to innovate their business models. The authors' analysis reveals that there is a significant relationship between the type of IoT applications and the IoT adoption rate and there is also a significant relationship between the type of business model innovation and the IoT adoption rate. Finally, five implementation strategies for smart enterprise development are discussed.

An Exploratory Study of the Impact of the Internet of Things (IoT) on Business Model Innovation

2016 ◽  
Vol 7 (3) ◽  
pp. 1-15 ◽  
Author(s):  
In Lee
Keyword(s):  
Business Model ◽  
Significant Relationship ◽  
Business Models ◽  
Implementation Strategies ◽  
Business Model Innovation ◽  
Adoption Rate ◽  
Iot Applications ◽  
Fortune 500 Companies ◽  
The Impact ◽  
The Internet Of Things

This paper introduces IoT categories used to build smart enterprises and discusses how Fortune 500 companies may use various IoT applications to innovate their business models. The authors' analysis reveals that there is a significant relationship between the type of IoT applications and the IoT adoption rate and there is also a significant relationship between the type of business model innovation and the IoT adoption rate. Finally, five implementation strategies for smart enterprise development are discussed.

Business models for the now economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Art T. Weinstein
Keyword(s):  
Online Learning ◽  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Content Type ◽  
Digital Business Models ◽  
Business Practitioners ◽  
The Impact ◽  
Remote Learning

Purpose Business models are a key to success. This paper aims to identify the characteristics of the Now Economy, discuss the components of an effective business model, examine numerous e-commerce business models and provide an application of online learning. Design/methodology/approach The literature on business models is reviewed. E-commerce models are explored as a means for building competitive advantage in the Now Economy. An in-depth case study of remote learning in universities illustrates the development of a sound digital business model. Findings Business models explain where and how an organization competes and the financial feasibility of its strategy. Digital business models create market differentiation or disruption. This paper explains 20 e-commerce business models and offers an in-depth view of the opportunities and challenges in the online learning sector. Research limitations/implications Building on the literature, this work is conceptual and presents a case study. It is not an empirical study. A three-point agenda for scholars includes research on speed and service in business models, assessing the impact of customer value and examining the market power of Big Tech. Practical implications The digital component of the economy is growing annually. Business practitioners must respond by developing winning business models. The remote learning application is particularly relevant given today’s changing educational market. Originality/value While there has been considerable research on business models, there has been limited work on digital business models, which is the focus of this article.

The Impact of Cloud-Based Digital Transformation on IT Service Providers

2017 ◽  
Vol 7 (4) ◽  
pp. 1-19 ◽  
Author(s):  
Trevor Clohessy ◽  
Thomas Acton ◽  
Lorraine Morgan
Keyword(s):  
Cloud Computing ◽  
Business Model ◽  
Business Models ◽  
Service Providers ◽  
Digital Transformation ◽  
Focus Group Study ◽  
Model Framework ◽  
It Service ◽  
Technology Service ◽  
The Impact

Cloud-based digital transformation is having a profound impact on new and incumbent information technology service providers. In transitioning from traditional to cloud-based service provision, some IT service providers are experiencing substantial difficulties in realizing effective business models. Taking the perspective of 20 large business model mature and small and medium enterprise born-on-the-cloud multinational IT service providers, this focus group study contributes to the dearth of research examining the broader impact of cloud computing on IT service providers' business model. The study provides two core insights. First, using the STOF business model framework, the paper provides a vivid contextual understanding of the nuanced impact of cloud computing along four core business model domains: service, technological, organisational and financial. Second, the study identifies a number of salient challenges which are impacting IT service providers' efforts to effectively leverage the benefits of cloud-based digital transformation.

scholarly journals The Importance of Business Model Factors for Cloud Computing Adoption: Role of Previous Experiences

Organizacija ◽  
2017 ◽  
Vol 50 (3) ◽  
pp. 255-272 ◽  
Author(s):  
Kristina Bogataj Habjan ◽  
Andreja Pucihar
Keyword(s):  
Cloud Computing ◽  
Business Model ◽  
Business Models ◽  
Service Providers ◽  
Organizational Factors ◽  
Research Results ◽  
Computing Services ◽  
Cloud Computing Adoption ◽  
Cloud Computing Services ◽  
The Impact

Abstract Background and Purpose: Bringing several opportunities for more effective and efficient IT governance and service exploitation, cloud computing is expected to impact the European and global economies significantly. Market data show that despite many advantages and promised benefits the adoption of cloud computing is not as fast and widespread as foreseen. This situation shows the need for further exploration of the potentials of cloud computing and its implementation on the market. The purpose of this research was to identify individual business model factors with the highest impact on cloud computing adoption. In addition, the aim was to identify the differences in opinion regarding the importance of business model factors on cloud computing adoption according to companies’ previous experiences with cloud computing services. Methodology: Based on literature review, prior research results, and interviews with cloud computing providers and users, a research model was developed. Statistical analysis focused on identification of factors’ importance on cloud computing adoption and differences in opinions according to respondents’ previous experiences with cloud computing services. The study was done among 80 companies and five major cloud computing providers in Slovenia. Results: The research results reveal statistically significant differences in opinions on the importance of cloud computing business model factors according to respondents’ previous experiences with cloud computing services. The results can provide orientation for redesign or innovation of existing business models towards the creation of a customer-oriented business model for the more successful exploitation of cloud computing services and business opportunities. For potential users, the findings represent guidelines for the successful adoption of cloud computing services. Conclusions: In our research, the investigated business model factors could be classified into so-called “business model organizational factors”, as they primarily need to be considered by cloud service providers when defining or innovating their business models. For future research, the model should also include the impact of environmental factors, such as Competition, Business Partners, Legislation, Economic Situation, in order to investigate their impact on cloud adoption.

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