EconPapers    
Economics at your fingertips  
 

The Airline Business Model

Paul Chiambaretto and Emmanuel Combe
Additional contact information
Paul Chiambaretto: MBS School of Business
Emmanuel Combe: University of Paris 1 Panthéon-Sorbonne

Chapter Chapter 3 in Introduction to Air Transport, 2025, pp 41-55 from Springer

Abstract: Abstract This chapter analyzes the airline business model in detail, focusing on its structural characteristics and financial fragility. It begins by unpacking the main sources of costs, including fixed versus variable costs, and revenues with an emphasis on the role of ancillary revenues. It explains the importance of load factor and yield management in determining profitability. The chapter then contrasts different models—full-service, low-cost, and hybrid—and discusses how each adapts to market constraints. Special attention is paid to the role of fleet management, network strategy (hub-and-spoke vs. point-to-point), and partnerships such as alliances and joint ventures. The chapter concludes by reflecting on the strategic trade-offs airlines must navigate in balancing cost efficiency, service quality, and differentiation in a hypercompetitive environment.

Keywords: Airline business model; Cost structure; Yield management; Alliances; Network strategy (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:spbrcp:978-3-031-99936-9_3

Ordering information: This item can be ordered from
http://www.springer.com/9783031999369

DOI: 10.1007/978-3-031-99936-9_3

Access Statistics for this chapter

More chapters in SpringerBriefs in Business from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-10-01
Handle: RePEc:spr:spbrcp:978-3-031-99936-9_3