The aim of this paper is to establish the airline business model spectrum in recognition of the idea that airlines are often better considered along a continuum of business models rather than categorized into discrete groups. This is achieved by extending the analysis on different types of business models (low-cost, regional and full service carriers), allocating their positions within the spectrum. The model is particularly useful to better situate hybrid and regional airlines, as they tend to mix characteristics of both low-cost and full service carriers. Data from nine major US carriers were used to map and summarize their business models across factors such as revenue, connectivity, convenience, comfort, aircraft and labor. While airline business models can be delineated to a certain extent, these results also highlight a high degree of variation within each airline with respect to the factors examined. This is particularly the case for hybrid airlines. The model also provides a useful tool for airline managers and policymakers in obtaining a 'bird's eye view' of the concept of hybrid airlines and how these business models can be compared to low-cost and full service network carriers.

No abstract

No abstract