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The Role of e-Commerce in the Success of Low-cost Carriers

Author

Listed:
  • Ginanneschi Marco

    (Finanza Futura Srl, Italy)

  • Piu Pietro

    (Vismederi Srl, Italy)

Abstract

This research aims to answer the question if e-commerce favoured in a special way the growth of low-cost carriers within the civil aviation market. After defining low-cost and traditional carriers’ business models, data on transported passengers were collected for three countries (Italy, Germany and Spain) and confronted with the number of e-consumers. Despite a significant correlation in all the three markets, only in Italy our hypothesis has been supported by Granger causality, and the regression analysis allows to forecast a future characterized by a growing dominance of LCCs. Although the definition of an econometric model will require further studies, the distinctive features of the Italian market might represent a starting point for future research on the complex relationship between e-commerce and air transport.

Suggested Citation

  • Ginanneschi Marco & Piu Pietro, 2018. "The Role of e-Commerce in the Success of Low-cost Carriers," Scientific Annals of Economics and Business, Sciendo, vol. 65(4), pages 407-425, December.
    • Handle: RePEc:vrs:aicuec:v:65:y:2018:i:4:p:407-425:n:7
    DOI: 10.2478/saeb-2018-0029
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    More about this item

    Keywords

    e-commerce; e-consumers; low-cost carrier; Ryanair; Granger-causality;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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