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The long-haul low-cost airline business model: A disruptive innovation perspective

Sascha Albers, Jost Daft, Sebastian Stabenow and Volker Rundshagen

Journal of Air Transport Management, 2020, vol. 89, issue C

Abstract: This paper analyzes the impact of the long-haul low-cost (LHLC) airline business model on the air transport industry from a disruptive innovation perspective. We argue that the LHLC business model is set to stay; it is bound to penetrate the mass market that has, to date, been occupied by incumbent network carriers. It will thus lead to significant strategic adaptations in the long-haul air travel market where incumbents are well advised to prepare their responses. We provide a set of strategic response options along the categories of avoiding, accepting and embracing the LHLC business model that can be used by incumbents to defend their competitive positioning in the long-haul air travel market. This paper provides guidelines for airline managers to (re)evaluate the strategies of their own organizations facing the emergence of a potentially disruptive innovation in their industry.

Keywords: Low-cost carrier; Airline strategy; Business model; Disruptive innovation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:89:y:2020:i:c:s0969699720304622

DOI: 10.1016/j.jairtraman.2020.101878

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