Comment on “legacy carriers fight back”

The paper offers a comment on an earlier article by Hazledine that argued a business model adopted by Air Canada and Air New Zealand allows them to compete with low cost airlines. Examination of the model, however, indicates that it offers only limited protection from low cost airlines competition that has the option of replicating the model itself if it proves successful in the short-term.

Research highlights► The paper argues that the economics of the traditional legacy carrier model is still in doubt. ► Looking at new pricing strategies of Air Canada and Air New Zealand the paper questions whether this will lead to financial viability. ► The “new” product differentiation and price discrimination strategy of Air Canada and Air New Zealand, is neither non-replicable by LCCs nor closing the gap with the financial viability of low cost airlines.