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End of the free lunch? The responses of traditional European airlines to the low-cost carrier threat

Dennis, Nigel (2007) End of the free lunch? The responses of traditional European airlines to the low-cost carrier threat. Journal of Air Transport Management, 13 (5). pp. 311-321. ISSN 0969-6997

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Official URL: http://dx.doi.org/10.1016/j.jairtraman.2007.04.005

Abstract

The short-haul operations of traditional European airlines such as British Airways and Lufthansa have come under increasing pressure from the growth of low-cost carriers. This paper examines their competitive responses. These are found to include reductions in labour costs, greater use of regional aircraft and a run-down of secondary hubs. Minimum stay requirements on cheap fares have been axed in many markets, while changes to the onboard service and a move to direct-sell bring these airlines closer to the low-cost carrier product. The network strength is largely maintained however, which appears a better strategy than setting up a low-cost subsidiary.

Item Type:Article
Uncontrolled Keywords:Airline, competition, cost, fare, service, network, revenues, productivity
Research Community:University of Westminster > Architecture and the Built Environment, School of
ID Code:4449
Deposited On:19 Sep 2007
Last Modified:11 Aug 2010 15:32

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