| Title |
Long-haul low cost airlines: Characteristics of the business model and sustainability of its cost advantages |
| ID_Doc |
78204 |
| Authors |
Soyk, C; Ringbeck, J; Spinier, S |
| Title |
Long-haul low cost airlines: Characteristics of the business model and sustainability of its cost advantages |
| Year |
2017 |
| Published |
|
| DOI |
10.1016/j.tra.2017.09.023 |
| Abstract |
Existing academic literature is inconclusive about characteristics and viability of the long-haul low cost airline business model, whereas several airlines of this type are emerging. This article aims to validate its defining characteristics by clustering a sample of 37 transatlantic airlines using principal component and hierarchical cluster analyses along a newly constructed long-haul airline business model framework. To contribute to the evaluation of business model viability, cost differences between clusters are uncovered subsequently followed by a discussion of their sustainability. Key findings include the characterization of the emerging long-haul LCC business model and its significant differences from existing legacy hub and leisure carrier models. On a cluster average, 33% lower unit costs compared to legacy hub carriers were identified, of which 24 percentage points were evaluated as sustainable. |
| Author Keywords |
Airlines; Business models; Long-haul; Low cost; Point-to-point |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI) |
| EID |
WOS:000417659500016 |
| WoS Category |
Economics; Transportation; Transportation Science & Technology |
| Research Area |
Business & Economics; Transportation |
| PDF |
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