کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
1031056 | 1483596 | 2012 | 7 صفحه PDF | دانلود رایگان |
Today, many low cost carriers (LCCs) continue to enjoy rapid growth and still have a fair number of new aircraft on order. There are signs however that the market for LCCs is limited, owing to increasing route density problems, primarily in Europe but seemingly also in North America: the fact that average frequencies have decreased and average route distances increased since 2001 indicate that LCCs are increasingly operating in exceedingly thinner niche markets. This perhaps explains why LCCs have been trying to adapt their business strategies to assure future growth by shifting to primary airports, facilitating transfers, engaging in codesharing, entering alliances, and acquiring other airlines. This paper identifies the possible factors limiting the LCC model's growth and explains how the largest LCCs in Europe and the US have subsequently reacted.
► Creating adequate route density is a key issue for each airline business model.
► Increasing route length and decreasing frequency reflect Ryanair's network limits.
► Route density urged Southwest to change its network in a transfer-oriented model.
► Ancillary revenues can only partly compensate for low route densities.
► Route density in Europe urges LCCs from organic growth to acquisition strategies.
Journal: Journal of Air Transport Management - Volume 21, July 2012, Pages 17–23