Rethinking Airline Business Models

Download or read book Rethinking Airline Business Models written by Julian Rossy and published by Dike Publishers. This book was released on 2019-10-15 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The topic of business models in the commercial aviation industry has been researched by many scholars. They have revealed a phenomenon called "convergence of models": the business model of low-cost carriers goes towards full-service and the business model of full-service carriers goes towards low-cost. Using this phenomenon as a starting point, this thesis aims to rethink the way business models are perceived. From an airline-centered reflection, the goal is to develop a new terminology that is customer-centric. The ultimate target is to reduce the confusion of travelers flying on a given airline. To reach this result, the four generally accepted business models - low-cost, full-service, regional and leisure - are being broken down into components and patterns, resulting in a skeleton called "Airline Business Model Framework". This framework is used for the analysis of 40+ carriers in the perspective of building new strategies and develop a new terminology for the dominant business models. Based on many criteria, the author proposes four new terms for business models: "No-frills carriers", "Unbundlers", "Boutique carriers" and "Connectors". The differentiation between the models focuses on the service level provided to passengers, and not only on the structure of the airline itself. Successfully tested with the analysis of more than 130 airlines, the new terminology is a tool to better describe and differentiate airlines in the strong competitive landscape of the airline industry in this 21st century.