 Frequent flyer programs for European low-cost airlines: Prospects, risks and implementation guidelinesRichard Klophaus Journal of Air Transport Management, 2005, vol. 11, issue 5, 348-353 Abstract: The continuous growth of passenger numbers masks the fact that the European market for low fare air travel is radically changing. New airlines, takeovers as well as bankruptcies are reflecting strong competitive pressures within the market and from established network airlines fighting back to retain their market shares. European low-cost airlines (LCAs) operate with significant differences in unit costs and most of them are reporting marginal profits or losses. This suggests that many market participants will re-evaluate their business model and depart from aggressive low-cost, no-frills positioning by using service features such as frequent flyer programs (FFPs) to offer something more than simply cheap tickets. The author assesses prospects and problems involved in setting up FFPs and outlines how such a program should be designed for European LCAs to increase customer loyalty and long-term profitability. Keywords: Frequent flyer program; Low-cost airlines; Airline strategy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:11:y:2005:i:5:p:348-353 DOI: 10.1016/j.jairtraman.2005.07.001 Access Statistics for this article Journal of Air Transport Management is currently edited by Anne Graham More articles in Journal of Air Transport Management from Elsevier |
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