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In search of business model configurations that work: Lessons from the hybridization of Air Berlin and JetBlue

Leonardo Corbo

Journal of Air Transport Management, 2017, vol. 64, issue PB, 139-150

Abstract: This paper examines the rise of a distinct alternative to the traditional business model dichotomy between low-cost and full-service carriers (i.e. the hybrid business model) and questions its viability as an alternative for growth and profitability. Using a comparative assessment of business model innovation practices of two well-reputed carriers, Air Berlin and JetBlue, the paper highlights the importance of taking into account several components of a business model when deciding to experiment with it as these choices have important implications for an airline's performance. Our results suggest that, following the transition from a no-frills to a hybrid business model, a misalignment between the value proposition and the other elements of the business model will hinder an airline's ability to achieve a sustainable competitive advantage.

Keywords: Business models; Innovation; Hybrid carriers (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:eee:jaitra:v:64:y:2017:i:pb:p:139-150