TY - JOUR
T1 - Airline network competition
T2 - Full-service airlines, low-cost airlines and long-haul markets
AU - Pels, Eric
PY - 2009/3/25
Y1 - 2009/3/25
N2 - The paper discusses airline network competition. Low-cost airlines and conventional airlines have distinctly different strategies and network types. This determines their ability to compete with other airlines in specific markets. The paper discusses the lack of competition between conventional airlines in local markets, and sees why low-cost airlines are the primary source of competition in such markets. Conventional airlines are relatively strong on long-haul markets, using their networks to keep costs per seat relatively low. Charter airlines show that a long-haul low-cost strategy is feasible For scheduled low-cost airlines, this may be more difficult, but this does not automatically mean that low-cost airlines cannot enter thick long-haul markets.
AB - The paper discusses airline network competition. Low-cost airlines and conventional airlines have distinctly different strategies and network types. This determines their ability to compete with other airlines in specific markets. The paper discusses the lack of competition between conventional airlines in local markets, and sees why low-cost airlines are the primary source of competition in such markets. Conventional airlines are relatively strong on long-haul markets, using their networks to keep costs per seat relatively low. Charter airlines show that a long-haul low-cost strategy is feasible For scheduled low-cost airlines, this may be more difficult, but this does not automatically mean that low-cost airlines cannot enter thick long-haul markets.
KW - Airlines
KW - Deregulation
KW - Low-cost airlines
KW - Network competition
UR - http://www.scopus.com/inward/record.url?scp=65049087810&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=65049087810&partnerID=8YFLogxK
U2 - 10.1016/j.retrec.2009.01.009
DO - 10.1016/j.retrec.2009.01.009
M3 - Article
SN - 0739-8859
VL - 24
SP - 68
EP - 74
JO - Research in Transportation Economics
JF - Research in Transportation Economics
IS - 1
ER -