Abstract We examine how legacy and low-cost air carriers’ roles in serving business passengers in the US changed during the global economic recession from 2007. Quarterly data is examined to test the impact of a recession on the air travel behavior. We find that since 2007 business passengers represent a declining proportion of legacy carriers’ passenger volume, while they represent an increasing proportion of Southwest’s passengers. This trend suggests that Southwest’s market niche has shifted, and that the airline now plays a role similar to that of legacy carriers.

    Highlights ►An examination of the impact of economic recession on business travel by air. ► The importance of business air travel on Southwest Airlines has increased during the 2007 economic recession. ► The dominant position of legacy airlines in the US business travel market has significantly declined.


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    Title :

    The business passenger niche: Comparing legacy carriers and southwest during a national recession


    Contributors:

    Published in:

    Publication date :

    2010-01-01


    Size :

    2 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English






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