Volume List  / Volume 3 (1)

Article

DEVELOPMENT OF BUSINESS MODELS OF LOW-COST AIRLINES

DOI: 10.7708/ijtte.2013.3(1).07


3 / 1 / 69-81 Pages

Author(s)

Andrija Vidović - University of Zagreb, Faculty of Transport and Traffic Sciences, Department of Air Transport, Vukelićeva 4, 10000 Zagreb, Croatia -

Igor Štimac - Zagreb Airport Ltd., Rudolfa Fizira 1, 10150 Zagreb, Croatia -

Damir Vince - Zagreb Airport Ltd., Rudolfa Fizira 1, 10150 Zagreb, Croatia -


Abstract

The global economic crisis that affects all industries, including the aviation industry, has forced airlines to adjust their business models to existing market conditions. Low-cost airlines, which till the onset of economic crises in most cases followed the base low-cost business model, have adapted their business model in such a way that they have implemented segments of traditional airlines business models and thus created a hybrid between traditional and low-cost business models. This paper analyses to which extent low-cost airlines adjust their business model to the hybrid business model.


Download Article

Number of downloads: 17928


References:

Centre for Aviation (CAPA) and Innovata. 2013. Available from Internet: http://centreforaviation.com/.

 

Deutsches Zentrum für Luft- und Raumfahrt e.V. (DLR). 2008. Topical Report: Airline Business Models. Available from Internet: http://ec.europa.eu/transport/modes/air/doc/abm_report_2008.pdf.

 

Doganis, R. 2007. The airline business. Second edition, Routledge, USA. 307 p.

 

Gillen, D.; Gados, A. 2008. Airlines within airlines: Assessing the vulnerabilities of mixing business models, Research in Transportation Economics, 24(2008): 25-35.

 

Hamsathul, H.K. 2012. Airline Managenment Critical Rewiew of LCC VS Legacy Carrier. Available from Internet: http://pgdalatm.nalsar.ac.in/projects/ATM%20II%20LCC%20vs%20Legacy.pdf.

 

Klophaus, R.; Conrady, R.; Fichert, F. 2012. Low cost carriers going hybrid: Evidence from Europe, Journal of Air Transport Management, 23(2012): 54-58.

 

Kurth, W. 2008. A Review of Regional Growth and Sustainability in the LCC Market. In Proceedings of the 22nd Annual Geneva International Aviation Forum, Aircraft Finance & Commercial Aviation, MBA Workshop.

 

Sabre Airline Solutions. 2011. The Evolution of the Airline Business Model. Available from Internet: http://www.sabreairlinesolutions.com/images/uploads/Hybrid_Model_Brochure.pdf.

 

Štimac, I.; Vince, D.; Vidović, A. 2012. Efect of Economic Crisis on the Changes of Low-Cost Carriers Business Models. In Proceedings of the 15th International Conference on Transport Science ICTS 2012.

 

Vidović, A.; Mihetec, T.; Steiner, S. 2012. Low-Cost Airlines Traffic Evolution in South-East Europe, Journal of Society for Development of Teaching and Business Processes in New Net Environment in B&H, 7(1): 369-375.


Quoted IJTTE Works



Related Keywords