Evaluating the Long-haul Low-cost Airline Business Model: a Perspective on Disruptive Innovation

Abstract

This article explores how the long-distance low-cost airline business model is impacting the aviation industry through disruptive innovation. The LDLC business model is gaining traction and is set to challenge traditional network carriers in the mainstream market. As a result, significant strategic changes are on the horizon for long-haul air travel, requiring incumbents to adapt their approaches. We propose various strategic response options under avoidance, acceptance, and embracing of the LDLC business model that existing players can consider to maintain their competitive position in this evolving market. The paper provides valuable insight for airline managers seeking to reevaluate their organizations' strategies when confronted with a potentially disruptive innovation within their industry.