Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1031096 | Journal of Air Transport Management | 2012 | 6 Pages |
The profitable adaptation of the low-cost carrier model to long-haul flight operations is still subject to intensive discussion. We conduct a founded route profitability analysis for operational scenarios of low cost, long-haul services that includes a systematical evaluation of potential revenue sources. Our results suggest that regular low cost, long-haul operations are possible if the traditional full-service carrier product is effectively unbundled and suitable trunk routes can be identified.
► First distinct scenario setup and profitability calculation for long-haul LCC. ► LCC business model can be adapted successfully to long-haul operations. ► Effectively unbundling the FSC product is key success factor for long-haul LCC. ► 7100 passengers/week will generate positive profit contribution margin 2.