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The long-haul low-cost carrier: A unique business model

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  • Wensveen, John G.
  • Leick, Ryan

Abstract

While many industries reach a point of maturation, the airline industry is evolving to incorporate flexible strategies for business models that adapt to the changing economic environment. New business opportunities have emerged as a result of a variety of internal and external forces. This paper discusses opportunities for long-haul low-cost airlines by looking at the evolution of the model and defining three types of new business models.

Suggested Citation

  • Wensveen, John G. & Leick, Ryan, 2009. "The long-haul low-cost carrier: A unique business model," Journal of Air Transport Management, Elsevier, vol. 15(3), pages 127-133.
    • Handle: RePEc:eee:jaitra:v:15:y:2009:i:3:p:127-133
    DOI: 10.1016/j.jairtraman.2008.11.012
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    1. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
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    Cited by:

    1. Alderighi, Marco & Cento, Alessandro & Nijkamp, Peter & Rietveld, Piet, 2012. "Competition in the European aviation market: the entry of low-cost airlines," Journal of Transport Geography, Elsevier, vol. 24(C), pages 223-233.
    2. Albers, Sascha & Daft, Jost & Stabenow, Sebastian & Rundshagen, Volker, 2020. "The long-haul low-cost airline business model: A disruptive innovation perspective," Journal of Air Transport Management, Elsevier, vol. 89(C).
    3. Fageda, Xavier & Suau-Sanchez, Pere & Mason, Keith J., 2015. "The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 289-296.
    4. Daft, Jost & Albers, Sascha, 2012. "A profitability analysis of low-cost long-haul flight operations," Journal of Air Transport Management, Elsevier, vol. 19(C), pages 49-54.
    5. Wang, Kun & Tsui, Kan Wai Hong & Liang, Liping & Fu, Xiaowen, 2017. "Entry patterns of low-cost carriers in Hong Kong and implications to the regional market," Journal of Air Transport Management, Elsevier, vol. 64(PB), pages 101-112.
    6. Christidis, Panayotis, 2016. "Four shades of Open Skies: European Union and four main external partners," Journal of Transport Geography, Elsevier, vol. 50(C), pages 105-114.
    7. Urban, Marcia & Hornung, Mirko, 2021. "Mapping causalities of airline dynamics in long-haul air transport markets," Journal of Air Transport Management, Elsevier, vol. 91(C).
    8. Chiambaretto, Paul, 2021. "Air passengers’ willingness to pay for ancillary services on long-haul flights," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    9. Joonho Moon & Won Seok Lee & Jimin Shim, 2022. "Chief Executive Officers and the Value of US Airlines: The Moderating Effect of Carrier Type," Sustainability, MDPI, vol. 14(13), pages 1-12, June.
    10. Haomiao Zhai & Fan Yang & Fuxia Gao & Stavros Sindakis & Gazal Showkat, 2024. "Digital Transformation and Over-Investment: Exploring the Role of Rational Decision-Making and Resource Surplus in the Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14103-14134, September.
    11. Soliman, Amr & O’Connell, John Frankie & Tamaddoni-Nezhad, Alireza, 2022. "A data-driven approach for characterising revenues of South-Asian long-haul low-cost carriers per equivalent flight capacity per block hour," Journal of Air Transport Management, Elsevier, vol. 103(C).
    12. Soyk, Christian & Ringbeck, Jürgen & Spinler, Stefan, 2021. "Effect of long-haul low-cost carriers on North Atlantic air fares," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    13. Meltem CABER, 0. "Customer-Based Market Positions of Domestic Airlines in Turkey," Journal of Tourismology, Istanbul University, Faculty of Economics, vol. 4(1), pages 9-19.
    14. Wilken, Dieter & Berster, Peter & Gelhausen, Marc C., 2016. "Analysis of demand structures on intercontinental routes to and from Europe with a view to identifying potential for new low-cost services," Journal of Air Transport Management, Elsevier, vol. 56(PB), pages 79-90.
    15. Bauer, Linus Benjamin & Bloch, Daniel & Merkert, Rico, 2020. "Ultra Long-Haul: An emerging business model accelerated by COVID-19," Journal of Air Transport Management, Elsevier, vol. 89(C).
    16. Akamavi, Raphaël K. & Mohamed, Elsayed & Pellmann, Katharina & Xu, Yue, 2015. "Key determinants of passenger loyalty in the low-cost airline business," Tourism Management, Elsevier, vol. 46(C), pages 528-545.
    17. Zuidberg, Joost & de Wit, Jaap G., 2020. "The development of long-haul low-cost networks in the North Atlantic airline market: An exploratory data approach," Transport Policy, Elsevier, vol. 95(C), pages 103-113.
    18. Soyk, Christian & Ringbeck, Jürgen & Spinler, Stefan, 2017. "Long-haul low cost airlines: Characteristics of the business model and sustainability of its cost advantages," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 215-234.
    19. Adiloğlu-Yalçınkaya, Leyla & Besler, Senem, 2021. "Institutional factors influencing business models: The case of Turkish Airlines," Journal of Air Transport Management, Elsevier, vol. 91(C).
    20. de Wit, Jaap G. & Zuidberg, Joost, 2012. "The growth limits of the low cost carrier model," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 17-23.
    21. Kuljanin, Jovana & Kalić, Milica & Begović, Boris & Mijović, Nemanja & Renold, Manuel, 2021. "The effect of LCC market entry on dominant FSC's price into long haul sector: A case of Norwegian competition on British Airways' prices on selected transatlantic routes," Journal of Air Transport Management, Elsevier, vol. 91(C).
    22. Hunt, Jennifer & Truong, Dothang, 2019. "Low-fare flights across the Atlantic: Impact of low-cost, long-haul trans-Atlantic flights on passenger choice of Carrier," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 170-184.
    23. Robert Ambrož & Doris Gomezelj Omerzel, 2017. "Business Model Innovation in Tourism: How to Survive in Highly Competitive Environments," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 10(2), pages 175-183.
    24. Asadi, Mehrad & Pham, Son D. & Nguyen, Thao T.T. & Do, Hung Xuan & Brooks, Robert, 2023. "The nexus between oil and airline stock returns: Does time frequency matter?," Energy Economics, Elsevier, vol. 117(C).
    25. Maertens, Sven, 2011. "The market potential of all-premium class services on medium haul leisure routes from Germany," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 181-186.

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