Can long-haul low-cost airlines be successful?
Date published
2008-01-01T00:00:00Z
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Journal Title
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Volume Title
Publisher
Elsevier
Department
Type
Article
ISSN
0739-8859
Format
Citation
Peter Morrell (2008) Can long-haul low-cost airlines be successful? Research in Transportation Economics, Volume 24, Issue 1, The Economics of Low Cost Airlines, pp. 61-67
Abstract
A key question is whether the very successful, largely short-haul LCC business model can work over long-haul sectors? This paper compares the cost and other advantages of LCCs and evaluates how far they might be applied to long-haul sectors. It is estimated that cost advantages might be much lower than the 50–60% on short-hauls. Other factors such as the adoption by network airlines of some LCC features and their likely competitive response, the limited potential for market stimulation, the need for dense markets and feed traffic all combine to cast doubt on the widespread establishment of the business model for long-haul flights.
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Github
Keywords
Airline operations, Long-haul air services, Low-cost airline viability