A Boolean Approach to Airline Business Model Innovation

Research in business model innovation has identified its significance in creating a sustainable competitive advantage for a firm, yet there are few empirical studies identifying which combination of business model activities lead to success and therefore deserve innovative attention. This study analyzes the business models of North America low-cost carriers from 2001 to 2010 using a Boolean minimization algorithm to identify which combinations of business model activities lead to operational profitability. The research aim is threefold: complement airline literature in the realm of business model innovation, introduce Boolean minimization methods to the field, and propose alternative business model activities to North American carriers striving for positive operating results.