A conceptual framework for measuring airline business model convergence

This paper develops a measurement framework that synthesizes the airline and strategy literature to identify relevant dimensions and elements of airline business models. The applicability of this framework for describing airline strategies and structures and, based on this conceptualization, for assessing the potential convergence of airline business models over time is then illustrated using a small sample of five German passenger airlines. For this sample, the perception of a rapprochement of business models can be supported. This paper extends the mostly qualitative and anecdotal literature on convergence in the airline industry and provides a platform for further empirical convergence studies.

► Introduces a consistent framework for measuring distinct airline business models.
► Framework offers support to airline managers and business analysts.
► Framework applicable for measuring convergence among airlines.
► First empirical indication for convergence toward a full-service carrier model.
► Airline managers of both LCC and FSC have to refocus on their respective strengths.