The long-haul low-cost airline business model: A disruptive innovation perspective

Albers, Sascha; Daft, Jost; Stabenow, Sebastian; Rundshagen, Volker

doi:10.1016/j.jairtraman.2020.101878

Cited by 23 publications

(10 citation statements)

References 52 publications

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“…Whereas low and ultra-low-cost models are well established in the short and medium-haul markets, the case for low-cost long haul is not so clear ( Fageda et al, 2015 , Whyte and Lohmann, 2015 ). Although some success can be observed in Asia with examples of airlines such as AirAsia, and although some authors make the case for the possibility of this type of model ( Albers et al, 2020 ), the pandemic has put into question the viability of such an option in markets like the transatlantic. The cease of Norwegian’s transatlantic flights serves as an example of this.…”

Section: Resultsmentioning

confidence: 99%

The impact of the COVID-19 crisis on the US airline market: Are current business models equipped for upcoming changes in the air transport sector?

Fontanet-Pérez

Vázquez

Carou

2022

Case Studies on Transport Policy

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Section: Resultsmentioning

confidence: 99%

The impact of the COVID-19 crisis on the US airline market: Are current business models equipped for upcoming changes in the air transport sector?

Fontanet-Pérez

Vázquez

Carou

2022

Case Studies on Transport Policy

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“…The instrumental case study research approach provides an understanding of a specific phenomenon and is designed around established theory (Grandy, 2010). The present study was designed around the established long-haul, low-cost carriers' (LCCs) business model (Albers et al, 2020;Francis et al, 2007;Renehan & Efthymioun, 2019;Wensveen & Leick, 2009) and air freight management and operations (Doganis, 2009;Dresner & Zou, 2017;Morrell & Klein, 2019;Sales, 2013Sales, , 2016Sales, , 2017.…”

Section: Methodsmentioning

confidence: 99%

“…The low-cost carriers (LCC) business model has evolved in more recent times with several low-cost carriers (LCCs) now operating long-haul, scheduled, no frill services (Albers et al, 2020;De Poret, O'Connell &Warnock-Smith, 2015;Martín Rodríguez & O'Connell, 2018;Soyk, Ringbeck, & Spinler, 2017;Whyte & Lohmann, 2015). The low-cost carriers (LCC's) have also introduced regional services in recent times as well (Schofield, 2015).…”

Section: Introductionmentioning

confidence: 99%

The Evolution of the Low-Cost Carriers in Australia’s International Air Freight Market

Baxter

2022

Journal of Aviation

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This study examines the development of the low-cost carriers (LCCs) in Australia’s export and import air freight markets. The study period is from 2004 to 2020. The study used a qualitative instrumental case study research approach. The data gathered for the study was examined by document analysis. The study found that the development of the low-cost carriers (LCCs) share of Australia’s annual export and import air freight markets occurred in three distinct phases. In the initial phase, 2004-2005, the market was served by just one low-cost carrier (LCC) Pacific Blue Airlines, who did not transport any export or import air freight in 2004. In 2005, the airline made a strategic policy decision to transport air freight. Phase 2 saw the inception of international services by Jetstar Airways in 2006. Jetstar Airways immediately gained import and export air freight traffic. The third phases took place from 2007 to 2020, when the major Asia-based low-cost carriers entered the market, starting with AirAsia-X in 2007. The low-cost carriers (LCCs) annual air freight market growth rates oscillated substantially over the study period, particularly for export air freight traffic. Despite the strong growth, the low-cost carriers (LCCs) annual market export and import air freight shares are considerably lower than those of the dedicated all-cargo carriers and full-service networks carriers (FSNCs).

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“…Low cost airlines are mainly characterized by online ticket booking, no free meals, standardized flight fleet, high aircraft utilization, and service outsourcing ( Mason and Morrison, 2009 ; Teece, 2010 ; Diaconu, 2012 ; Pereira and Caetano, 2015 ; Dobruszkes and Wang, 2019 ). In terms of routes, due to strict regulations on long-distance transportation services, low-cost airlines mainly serve short- and medium-distance routes ( Jiang, 2013 ; Albers et al, 2020 ). By contrast, the most distinctive feature of full service airlines is customer segmentation, the provision of a variety of different cabins (from first-class cabins, business class, to economy class).…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of Passenger Risk Perception During the COVID-19 Pandemic on Airline Industry: Evidence From the United States Stock Market

Zhu

et al. 2022

Front. Psychol.

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The COVID-19 pandemic has caused a dramatic reshaping of passenger risk perception for airline industry. The sharp increase in risk aversion by air passenger has caused a disastrous impact on the tourism service industry, particularly airline industry. Although the existing literature has provided a lot of studies on the impact of the pandemic on travel industry, there are very few studies discussing the impact of change in passenger risk perception on the stock market performance of airline industry. This study considers two types of airline companies, full-service and low-cost. In order to overcome the traditional problem of the Chow test, Quandt–Andrews test is used to identify structural change points during the pandemic in the stock prices of United States airline companies. The result shows that an industry-wide structural change in the stock market performance indeed is found to take place during the pandemic for United States airline companies. Meanwhile, no significant difference is found in the structural change date between the two types of airline companies. The selected airline companies are found to be clustered toward the end of 2020 (November and December) in their structural change dates. Although the strike of the COVID-19 pandemic on airline industry has proven to be widespread and profound, our investigation implies that air passengers have gradually adapted to the new normal of travel activities at some level and partly rebuild their sense of safety under the strict epidemic-control measures.

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The long-haul low-cost airline business model: A disruptive innovation perspective

Cited by 23 publications

References 52 publications

The impact of the COVID-19 crisis on the US airline market: Are current business models equipped for upcoming changes in the air transport sector?

The impact of the COVID-19 crisis on the US airline market: Are current business models equipped for upcoming changes in the air transport sector?

The Evolution of the Low-Cost Carriers in Australia’s International Air Freight Market

The Effects of Passenger Risk Perception During the COVID-19 Pandemic on Airline Industry: Evidence From the United States Stock Market

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