Abstract The profitable adaptation of the low-cost carrier model to long-haul flight operations is still subject to intensive discussion. We conduct a founded route profitability analysis for operational scenarios of low cost, long-haul services that includes a systematical evaluation of potential revenue sources. Our results suggest that regular low cost, long-haul operations are possible if the traditional full-service carrier product is effectively unbundled and suitable trunk routes can be identified.
Highlights ► First distinct scenario setup and profitability calculation for long-haul LCC. ► LCC business model can be adapted successfully to long-haul operations. ► Effectively unbundling the FSC product is key success factor for long-haul LCC. ► 7100 passengers/week will generate positive profit contribution margin 2.
A profitability analysis of low-cost long-haul flight operations
Journal of Air Transport Management ; 19 ; 49-54
2012-01-01
6 pages
Article (Journal)
Electronic Resource
English
A profitability analysis of low-cost long-haul flight operations
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