Abstract In a context of limited organic growth, some low-cost airlines have considered business strategies that are changing two key principles of the low-cost airline business model: fare unbundling and point-to-point operations. Using a multivariate analysis we identify the influence of several route characteristics on the share that European pure low-cost and hybrid low-cost carriers have on the routes they operate. Results show that, from a network perspective, the distance between the archetypical low-cost carrier business model and the adapted low-cost carrier business model with a hybrid approach is widening. Differences are also clear between hybrids offering connecting services and hybrids offering fare bundling. The results are also important from an airport policy perspective, since secondary airports and legacy airports in transition could be able to reduce the gap between them and the main hub airports.

    Highlights The low-cost carrier business model is evolving towards a hybrid approach. We analyse the influence of route characteristics on the market share of LCCs. Results show increasing distance between archetypical and hybrid low-cost carriers. Results suggest important policy and strategy directions for secondary airports.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe


    Contributors:

    Published in:

    Publication date :

    2014-12-11


    Size :

    8 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




    Introducing connecting flights in LCCs' business model: Ryanair's network strategy

    Morlotti, Chiara / Birolini, Sebastian / Cattaneo, Mattia et al. | Elsevier | 2020



    Fair's fare is the business

    British Library Online Contents | 1997


    Fair's fare is the business

    Online Contents | 1997