Fra LCC til FSC: Forretningsmodellernes nuancer og deres indflydelse på profitabiliteten

Kristian Hvass

    Research output: Working paperResearch

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    Abstract

    Business model development at low-cost and full-service airlines throughout the years has led to a departure from the original models. The low-cost model is shifting up-market to capture higher yield traffic, while the full-service model is adopting low-cost model elements to achieve optimization. This paper determines how the degree of adherence to either original model impacts the profit level of low-cost carriers and full-service carriers. The methodology studies 26 North American and European airlines, 12 low-cost and 14 full-service, and evaluates each polarized group’s 2004 product and operational features against the original models. Evaluation occurs on an ordinal scale and is derived from secondary data sources to present the level of transition from the original model. Analyses results show that profit levels are directly correlated to adherence to the original model, at both extremes, while those carriers diverging most from the traditional models experience lower profit levels.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherCenter for Tourism and Cultural Management. Copenhagen Business School
    Pages5-29
    Number of pages25
    ISBN (Print)8792019005, 9788792019004
    Publication statusPublished - Nov 2006
    SeriesTCM Working Paper Series
    Number4, part 1

    Bibliographical note

    Presented at the conference, Airways 06, April 6, 2006, Frederiksberg, Denmark

    Keywords

    • Business models
    • Low-cost carriers
    • Airlines
    • Industrial classification
    • Strategic options

    Cite this

    Hvass, K. (2006). Fra LCC til FSC: Forretningsmodellernes nuancer og deres indflydelse på profitabiliteten. (pp. 5-29). Center for Tourism and Cultural Management. Copenhagen Business School. TCM Working Paper Series, No. 4, part 1