Business model hybridization but heterogeneous economic performance: Insights from low-cost and legacy carriers in Europe

Strategic Response of European Airlines to Market Dynamics: A Comparative Analysis

“…Another study evaluated whether airline business model hybridization has led to a homogeneous economic performance in Europe by comparing business models. They found that, regardless of the level of analysis, low-cost and traditional carriers are distinct groups with specific economic performance features (Chiambaretto and Combe 2023). Based on the mix of insights from the previous literature based on multiple-case analyses, the analysis of the industrial plans of the significant carriers analyzed in this paper and the existing gap in the literature on the simultaneous analysis of the European market structure dynamics and the strategic response of incumbents, we developed a research framework aimed at resuming strategic pillars, as shown in Figure 3.…”

“…This article adds to a series of studies that, with different approaches, have helped shed light on the effects of liberalization in Europe. To name a few, previous studies have examined how European airline incumbents have responded to liberalization (Chang and Williams 2002); the trade-off between the growth and profits of different carriers (Maung et al 2022); whether airline business model hybridization has led to homogeneous economic performance features (Chiambaretto and Combe 2023); which parts of Europe airline and airport competition are most intense (Lieshout et al 2016); and the changes in output, structure of supply, yields, business models, and performance of flag carriers (Burghouwt and de Wit 2015). We have investigated incumbent airlines' strategies that have been presented in the literature and have tried to understand them by considering political science theories, inadequate management practices or strategies, the spatial dimension, and other contingent causes (Daglous 2021;Ciliberto and Schenone 2012;Bock et al 2020).…”