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Please use this identifier to cite or link to this item: http://dspace.lib.cranfield.ac.uk/handle/1826/1232

Document Type: Postprint
Title: Airlines within airlines: An analysis of US network airline responses to Low Cost Carriers.
Authors: Morrell, Peter
Issue Date: Sep-2005
Citation: Peter Morrell, Airlines within airlines: An analysis of US network airline responses to Low Cost Carriers, Journal of Air Transport Management, Volume 11, Issue 5, Ninth Conference of the Air Transport Research Society, September 2005, Pages 303-312.
Abstract: The establishment of Low Cost Carrier offshoots by network carriers has three possible objectives: to spin off profitable businesses; to see off low cost competition in key markets; and to establish a test-bed for adapting low cost business processes to their mainline operations. It is argued that US network carrier offshoots have failed on all three counts. The significant cost differences between network and Low Cost Carriers are identified, and it is shown that network carriers have made little inroads into closing this gap, whether or not they set up Low Cost Carrier offshoots. Some reasons for the failure of the offshoots are proposed by examining operating differences: mixed fleets, keeping interlining and two class cabins and the lack of progress on reducing labour costs. Labour Union restrictions and the lack of separation from the main airline were crucial.
URI: http://hdl.handle.net/1826/1232
Appears in Collections:Staff publications - School of Engineering

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