Abstract The COVID-19 outbreak has sent shockwaves throughout the aviation industry, sending a myriad of liquidity-strapped airlines into administration or part government ownership. In turn, this paper argues that the novel phenomenon of Ultra Long Haul (ULH) operations already maintains the necessary characteristics to generate a competitive advantage that will not only succeed, but outperform other business models, in a post COVID-19 era. Our modelling and scenario analysis results suggest that point-to-point ULH services, with access to a strong domestic feeder system, will not only require minimal adjustments to cope with COVID-19, but will simultaneously produce higher seat-load factors and yields, heightened network flexibility, and unique health benefits tied to its ability to bypass densely populated hub airports.
Highlights COVID-19 has forced airlines to fundamentally re-evaluate their business models. ULH operations have become an increasingly viable business proposition in light of the COVID-19 pandemic. ULH provides a range of unique net benefits when compared to the Hub & Spoke model. Synergised with Point-to-Point operations, ULH can provide Full Service Network Carriers with greater flexibility and agility. ULH can connect COVID-19 safe countries without the need to transfer at densely populated hub airports.
Ultra Long-Haul: An emerging business model accelerated by COVID-19
2020-08-02
Article (Journal)
Electronic Resource
English
The long-haul low-cost carrier: A unique business model
Online Contents | 2009
|Ultra long-haul transmission with multi-terabit capacity
IEEE | 2001
|The long-haul low-cost carrier: A unique business model
Elsevier | 2008
|