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Low Cost Airlines:: Business Model and Employment Relations

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  • Hunter, Laurie

Abstract

The passenger air travel industry is experiencing increasing competition between low cost/no frills carriers (LCC) and the more traditional full service carriers. This paper explores the comparative business models with a view to identifying areas where these might be expected to generate different HR and employment relations practices, and checking the findings against available evidence. While some of the expectations are confirmed, unionisation is higher than anticipated in the LCC sector and a relatively high percentage of staff were on regular rather than contingent contracts. Differences in approach are observed among LCC airlines, and the evidence indicates some convergence between the two sectors as competition heightens.

Suggested Citation

  • Hunter, Laurie, 2006. "Low Cost Airlines:: Business Model and Employment Relations," European Management Journal, Elsevier, vol. 24(5), pages 315-321, October.
    • Handle: RePEc:eee:eurman:v:24:y:2006:i:5:p:315-321
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    Citations

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    Cited by:

    1. Delaplace, Marie & Dobruszkes, Frédéric, 2015. "From low-cost airlines to low-cost high-speed rail? The French case," Transport Policy, Elsevier, vol. 38(C), pages 73-85.
    2. Azadian, Farshid & Vasigh, Bijan, 2019. "The blurring lines between full-service network carriers and low-cost carriers: A financial perspective on business model convergence," Transport Policy, Elsevier, vol. 75(C), pages 19-26.
    3. Eli Moen, 2017. "Weakening trade union power," Transfer: European Review of Labour and Research, , vol. 23(4), pages 425-439, November.
    4. Karwowski, Mariusz, 2016. "The risk in using financial reports in the study of airline business models," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 185-192.
    5. Devezas, Tessaleno, 2020. "Trends in aviation: rebound effect and the struggle composites x aluminum," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    6. Dobruszkes, Frédéric, 2009. "New Europe, new low-cost air services," Journal of Transport Geography, Elsevier, vol. 17(6), pages 423-432.
    7. Frédéric Dobruszkes, 2011. "Airline and high-speed rail competition in Europe: towards a comeback of air transport?," ERSA conference papers ersa10p180, European Regional Science Association.
    8. Jankiewicz, Jacek & Huderek-Glapska, Sonia, 2016. "The air transport market in Central and Eastern Europe after a decade of liberalisation – Different paths of growth," Journal of Transport Geography, Elsevier, vol. 50(C), pages 45-56.
    9. Diaconu Maxim Laura, 2012. "The Development of the Low-Cost Carriers’ Business Models. Southwest Airlines Case Study," Scientific Annals of Economics and Business, Sciendo, vol. 59(1), pages 231-238, July.
    10. Delbari, Seyyed Ali & Ng, Siew Imm & Aziz, Yuhanis Abdul & Ho, Jo Ann, 2016. "An investigation of key competitiveness indicators and drivers of full-service airlines using Delphi and AHP techniques," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 23-34.
    11. Laïla Benraiss-Noailles & Catherine Viot, 2017. "Attractiveness of low-cost companies? The Influence of the employer brand on the attractiveness of low-cost companies [L' attractivité des entreprises low-cost ? Le rôle du Capital-Marque Employeur," Post-Print hal-01803635, HAL.
    12. Fasone, Vincenzo & Kofler, Lukas & Scuderi, Raffaele, 2016. "Business performance of airports: Non-aviation revenues and their determinants," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 35-45.
    13. Samuel D. Barrows, 2019. "Assessing the Stock Market Performances of EU Low-Cost Airlines," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 95-100.
    14. Park, Eunil & Jang, Yeonju & Kim, Jina & Jeong, Nam Jeong & Bae, Kunwoo & del Pobil, Angel P., 2019. "Determinants of customer satisfaction with airline services: An analysis of customer feedback big data," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 186-190.
    15. Kuljanin, Jovana & Kalić, Milica, 2015. "Exploring characteristics of passengers using traditional and low-cost airlines: A case study of Belgrade Airport," Journal of Air Transport Management, Elsevier, vol. 46(C), pages 12-18.
    16. Baum, Tom, 2012. "Working the skies: Changing representations of gendered work in the airline industry, 1930–2011," Tourism Management, Elsevier, vol. 33(5), pages 1185-1194.
    17. Dobruszkes, Frédéric, 2011. "High-speed rail and air transport competition in Western Europe: A supply-oriented perspective," Transport Policy, Elsevier, vol. 18(6), pages 870-879, November.
    18. Chantziaras, Antonios & Dedoulis, Emmanouil & Leventis, Stergios, 2020. "The impact of labor unionization on monitoring costs," European Management Journal, Elsevier, vol. 38(2), pages 288-307.
    19. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.
    20. Chiambaretto, Paul & Combe, Emmanuel, 2023. "Business model hybridization but heterogeneous economic performance: Insights from low-cost and legacy carriers in Europe," Transport Policy, Elsevier, vol. 136(C), pages 83-97.
    21. Dobruszkes, Frédéric, 2013. "The geography of European low-cost airline networks: a contemporary analysis," Journal of Transport Geography, Elsevier, vol. 28(C), pages 75-88.

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