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  • 16.05.12 - Industry Monitor issue N°140 now available online - Issue N°140 of the EUROCONTROL bulletin on air transport trends is now available online more
  • 10.04.12 - Industry Monitor N°139 available online - Issue N°139 of the EUROCONTROL bulletin on air transport trands is now available online
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  • 25.01.12 - New Airneth column by Bert van Wee - In this new Airneth column by Prof.dr. Bert van Wee, he addresses the question if more air travel is per definition 'better'. more
  • 19.01.12 - Presentations Airneth/KiM seminar now available - Airneth, in cooperation with KiM, organized a seminar on the "Airport Package" on Thursday 12 January 2012 in The Hague more
  • 19.01.12 - Presentations EAC/Airneth seminar now available - The European Aviation club, in cooperation with Airneth, organized a seminar on Competition, Concentration and Consolidation in the Airline Industry on Friday 9 December 2011 in Brussels more
  • 02.12.11 - New column by Airneth director Guillaume Burghouwt - Airneth director Guillaume Burghouwt has writtena column for luchtvaartnieuws about the worsening conditions in the European airline industry (in Dutch.) more

airneth activities

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essential reading

  • De Wit, J. and Burghouwt, G. (2005) “Strategies of multi-hub airlines and the implications for natio more
  • Airneth (2009) The economic crisis and the impact on the network quality of hub airports more
  • Airneth (2008) The main findings of the Second Annual Conference ‘EU-US Open Skies: more
  • Puller, S.L., et al (2009) Testing theories of scarcity pricing in the airline industry more
  • Brockmann, D. (2010) 'The Eyjafjallajökull Event: What complex network theory can say' more
  • Wilken, D., et.al. (2005). Airport Choice In Germany – ATRS 2005 Conference, Rio de Janeiro, Brazil more

most downloaded

  • O’Connell, J.F. & Williams, G. (2005) Passengers’ perceptions of low cost airlines and full service more
  • Barrett, S.D. (2004) The sustainability of the Ryanair model more
  • Gillena, D. & Lall, A. (2004) Competitive advantage of low-cost carriers: some implications for airp more
  • CW Travel (2003) What Benefits to Low Cost Carriers Really Bring to Business Travel in Europe? more
  • Brophy, S. & St. George, D. (2003) How Ryanair has exploited the economic theory behind airline more
Details for Gillena, D. & Lall, A. (2004) Competitive advantage of low-cost carriers: some implications for airp
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NameGillena, D. & Lall, A. (2004) Competitive advantage of low-cost carriers: some implications for airp
Description

Gillena, D. & Lall, A. (2004) Competitive advantage of low-cost carriers: some implications for airports, Journal of Air Transport Management 10 (2004) 41–50

http://dx.doi.org/10.1016/j.jairtraman.2003.10.009. Accessed April 13, 2010


In this paper, the sources of competitive advantage of low-cost carriers such as Southwest, Ryanair and easyJet are identified. Many have looked to these carriers" operational efficiency as their source of advantage, but the choice of business model with point-to-point service provides the strategic advantage and the operational effectiveness complements this choice. The vertical relationships between processes are based on the simplicity of service. This leads to simplicity of processes and simplicity of organization.

These points are illustrated with a discussion of Southwest and how it organizes its â"turns" for flights. The "team" organization and the simplicity of information flows result in greater relational coordination. This contrasts as we show with airlines such as Ryanair that seek lower costs through lower prices. We argue the Southwest model is not generic and duplication is difficult because of the system coordination whereas the Ryanair model can be more easily duplicated. This results in first mover advantages for carriers such as Ryanair and their willingness to engage in long-term contracting for key assets, such as airport access. These differences in achieving operational efficiency have different implications for airports, which include bargaining power and risk exposure. An airport with a dominant single low-cost carrier is subject to more risk and low bargaining power.

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