Ultra Long-Haul: An emerging business model accelerated by COVID-19

Linus Benjamin Bauer, Daniel Bloch and Rico Merkert

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

Abstract: The COVID-19 outbreak has sent shockwaves throughout the aviation industry, sending a myriad of liquidity-strapped airlines into administration or part government ownership. In turn, this paper argues that the novel phenomenon of Ultra Long Haul (ULH) operations already maintains the necessary characteristics to generate a competitive advantage that will not only succeed, but outperform other business models, in a post COVID-19 era. Our modelling and scenario analysis results suggest that point-to-point ULH services, with access to a strong domestic feeder system, will not only require minimal adjustments to cope with COVID-19, but will simultaneously produce higher seat-load factors and yields, heightened network flexibility, and unique health benefits tied to its ability to bypass densely populated hub airports.

Keywords: Business models; COVID-19; Ultra long-haul; Innovation; Airlines (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:89:y:2020:i:c:s0969699720304853

DOI: 10.1016/j.jairtraman.2020.101901

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