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Competition between network carriers and low-cost carriers—retreat battle or breakthrough to a new level of efficiency?

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  • Franke, Markus

Abstract

The severe crisis of the global aviation industry has primarily struck the “classical†Network Carriers (NCs) with their complex hub&spoke operation platforms. The crisis was deepened, but by no means caused, by the terrorist attacks on September 11, 2001. The root cause was the end of a temporary revenue “bubble†after the first Iraq war, leading to historically high airline profits and major capacity expansions. After the end of the “golden†90s, an economic downturn and a fear of terrorism resulted in massive overcapacities, with yields showing a return to continued long-term decline.

Suggested Citation

  • Franke, Markus, 2004. "Competition between network carriers and low-cost carriers—retreat battle or breakthrough to a new level of efficiency?," Journal of Air Transport Management, Elsevier, vol. 10(1), pages 15-21.
    • Handle: RePEc:eee:jaitra:v:10:y:2004:i:1:p:15-21
    DOI: 10.1016/j.jairtraman.2003.10.008
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