Low cost carriers going hybrid: Evidence from Europe

This paper reports the findings of a survey on European airlines often categorized as low-cost carriers to see to which extent they have changed their business model towards a hybrid strategy, adopting features of full service network airlines. Data is provided on relative frequencies of attributes of the low-cost business model retained and modified respectively. The survey concludes that short-haul airline business models in Europe converge. A large percentage of low-cost carriers has evolved into hybrid carriers which blend low-cost traits with those of full service network carriers.

► The paper presents a methodology for comparing airline business models.
► This methodology is applied to what are considered Europe’s largest low-cost airlines.
► A number of different business models are found to exist among these carriers.
► A large percentage of airlines have evolved into hybrid carriers.