Flying high on low cost: Success in the low-cost airline industry

Veronika Majerová and Michal Jirásek

PLOS ONE, 2023, vol. 18, issue 12, 1-14

Abstract: Low-cost airlines have embraced diverse business models, yielding varying degrees of success. In our study, we apply a configurational approach that allows us to evaluate business models not as isolated components but as intricate business configurations. Through this lens, we identify two distinct models that successful low-cost airlines adopt: the pure low-cost model and the hybrid model. Each model has its own specific, often contradictory, attributes. Most significantly, our findings indicate that low-cost airlines must choose between offering a broad spectrum of additional services or focusing on high productivity and on-time performance. Our analyses reveal that low-cost airlines cannot sidestep this trade-off, as a simultaneous offering of both models does not lead to success.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0294638

DOI: 10.1371/journal.pone.0294638

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