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.


    Access

    Download


    Export, share and cite



    Title :

    Long-haul low-cost air services: revealing key competitive features of airline within airline strategy


    Contributors:
    Matus Materna (author) / Anna Tomova (author)


    Publication date :

    2016




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    Unknown




    Airline competition on European long haul routes

    Großbritannien, Parliament, House of Commons, Civil Aviation Authority | SLUB | 1994


    System Analysis of Long-haul Airline Market Dynamics

    Urban, Marcia | TIBKAT | 2023

    Free access



    Airline business : strategy for airline boardrooms worldwide

    TIBKAT | Volume 35, number 1 (January/February 2019)-

    Free access