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Airline franchising in Europe: benefits and disbenefits to airlines and consumers

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  • Denton, Nicholas
  • Dennis, Nigel

Abstract

Franchising has become an increasingly important commercial strategy for Europe's airlines as they seek to strengthen their position in the deregulated marketplace. This paper examines the practice of airline franchising in Europe since its inauguration by British Airways in 1993 and its subsequent adoption by most of the other major carriers. The advantages and disadvantages for both franchisor and franchisee airlines are investigated, drawing upon evidence from the operation of scheduled air services in Europe. Consideration is then given to the benefits claimed for consumers and the effect of franchising on competition. A generally positive picture arises, particularly in international markets. There are however incipient signs that where franchising leads to one major carrier becoming too dominant in its domestic market, the scope for competition and new entry is becoming suppressed.

Suggested Citation

  • Denton, Nicholas & Dennis, Nigel, 2000. "Airline franchising in Europe: benefits and disbenefits to airlines and consumers," Journal of Air Transport Management, Elsevier, vol. 6(4), pages 179-190.
    • Handle: RePEc:eee:jaitra:v:6:y:2000:i:4:p:179-190
    DOI: 10.1016/S0969-6997(00)00010-7
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    References listed on IDEAS

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    Cited by:

    1. Pagliari, Romano, 2005. "Developments in the supply of direct international air services from airports in Scotland," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 249-257.
    2. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.
    3. John Francis O’Connell & David Connolly, 2017. "The strategic evolution of Aer Lingus from a full-service airline to a low-cost carrier and finally positioning itself into a value hybrid airline," Tourism Economics, , vol. 23(6), pages 1296-1320, September.

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