Innovation Through Business Models: The Case of the Airline Industry
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The airline industry has changed tremendously in recent years. New airline business models have emerged in different markets since the middle of the 90s, for example, low-cost and hybrid airlines. In the airline industry, many different business models can be defined according to each airline’s business design. There are five business models that are used by the majority of airlines around the world. Today, the distinction between the different business models has changed and is no longer as clear as in the past. Competition has led many low-cost carriers to adopt attributes of network operators, including frequent flyer programs and most commonly the ability to connect with other airlines’ services. As a result, hybrid carriers have appeared recently. This categorization of business models stems from operational attributes as well as strategic choices such as business model components. This study explores both common characteristics and business model components of airline business models.
KeywordsBusiness models Airline industry Air transportation Strategic management
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