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.
The long-haul low-cost airline business model: A disruptive innovation perspective
2020-07-14
Article (Journal)
Electronic Resource
English
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