Abstract This paper analyzes the impact of the long-haul low-cost (LHLC) airline business model on the air transport industry from a disruptive innovation perspective. We argue that the LHLC business model is set to stay; it is bound to penetrate the mass market that has, to date, been occupied by incumbent network carriers. It will thus lead to significant strategic adaptations in the long-haul air travel market where incumbents are well advised to prepare their responses. We provide a set of strategic response options along the categories of avoiding, accepting and embracing the LHLC business model that can be used by incumbents to defend their competitive positioning in the long-haul air travel market. This paper provides guidelines for airline managers to (re)evaluate the strategies of their own organizations facing the emergence of a potentially disruptive innovation in their industry.

    Highlights Conceptualizes the long-haul low-cost business model as a (potentially) disruptive innovation. Argues that the LHLC business model is bound to penetrate the mass market. Provides strategic options for incumbent network carriers along the categories of avoid, accept and embrace. Guides airline managers to (re)evaluate the strategies of their own organizations facing a potentially disruptive innovation.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    The long-haul low-cost airline business model: A disruptive innovation perspective


    Contributors:


    Publication date :

    2020-07-14




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English






    Airline competition on European long haul routes

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


    Disruptive Airline Passenger Behaviour

    Vivian, M. / Flight Safety Foundation / International Federation of Airworthiness et al. | British Library Conference Proceedings | 1999


    Are long-haul truck drivers unusually alert? A comparison with long-haul airline pilots

    Sallinen, Mikael / Pylkkönen, Mia / Puttonen, Sampsa et al. | Elsevier | 2020