In this paper, we reveal which elements of business models typical for low-cost carriers and full-service network carriers were used by Norwegian and AirAsia X to enter markets with long-haul services. Our findings show that the long-haul low-cost operation which was realized as "airline within airline" strategy can be sustainable if an efficient mix of elements belonging to both low-cost and traditional airline business models is implemented. According to our analysis, traditional airlines will cope with the competition of low-cost carriers on long-haul markets mainly in the segments of less price-sensitive leisure passengers and more price-sensitive business passengers in the higher fare classes. Such long-haul low-cost innovation can also generate a new demand for long-haul services supplying the market with an unbundled product for passengers in a very price-sensitive segment.
Long-haul low-cost air services: revealing key competitive features of airline within airline strategy
2016
Article (Journal)
Electronic Resource
Unknown
Metadata by DOAJ is licensed under CC BY-SA 1.0
Airline competition on European long haul routes
SLUB | 1994
|Airline business : strategy for airline boardrooms worldwide
TIBKAT | Nachgewiesen 1987 - 32.2016,5
Airline business : strategy for airline boardrooms worldwide
TIBKAT | Volume 35, number 1 (January/February 2019)-