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Internationalization strategies of EU and Asia–Pacific low fare airlines

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  • Albers, Sascha
  • Heuermann, Caroline
  • Koch, Benjamin

Abstract

We employ Dunning’s eclectic paradigm (OLI) to shed light onto low fare airlines’ internationalization strategies. In addition to 31 European low fare airlines, we also analyze the internationalization strategies of 41 low cost carriers in the Asia–Pacific region. The results indicate that homogenous groups of such airlines emerge with regard to their internationalization strategies and that capital and ownership structure as well as relative timing is especially closely related to low fare airline’s entry modal choice. We discuss inferences for the use of the OLI paradigm in further studies of airline internationalization.

Suggested Citation

  • Albers, Sascha & Heuermann, Caroline & Koch, Benjamin, 2010. "Internationalization strategies of EU and Asia–Pacific low fare airlines," Journal of Air Transport Management, Elsevier, vol. 16(5), pages 244-250.
    • Handle: RePEc:eee:jaitra:v:16:y:2010:i:5:p:244-250
    DOI: 10.1016/j.jairtraman.2009.12.001
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    References listed on IDEAS

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    1. Gillen, David & Morrison, William, 2003. "Bundling, integration and the delivered price of air travel: are low cost carriers full service competitors?," Journal of Air Transport Management, Elsevier, vol. 9(1), pages 15-23.
    2. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
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    Cited by:

    1. 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).
    2. Klein, Klemens & Albers, Sascha & Allroggen, Florian & Malina, Robert, 2015. "Serving vs. settling: What drives the establishment of low-cost carriers’ foreign bases?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 17-30.
    3. Vatankhah, Sanaz & Bamshad, Vahideh & Altinay, Levent & De Vita, Glauco, 2023. "Understanding business model development through the lens of complexity theory: Enablers and barriers," Journal of Business Research, Elsevier, vol. 155(PA).
    4. Ramón-Rodríguez, Ana B. & Moreno-Izquierdo, Luis & Perles-Ribes, José F., 2011. "Growth and internationalisation strategies in the airline industry," Journal of Air Transport Management, Elsevier, vol. 17(2), pages 110-115.
    5. 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.
    6. Castiglioni, Marco & Gallego, à ngeles & Galán, José Luis, 2018. "The virtualization of the airline industry: A strategic process," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 134-145.

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