| Property | Value |
| Name | Alamdari, F. and Fagan, S. (2005) 'Impact of the adherence to the original low-cost model on the |
| Description | Alamdari, F. and Fagan, S. (2005) 'Impact of the adherence to the original low-cost model on the profitability of low-cost airlines', Transport Reviews, 25: 3, 377 — 392 http://dx.doi.org/10.1080/01441640500038748. Accessed April 19, 2010Undoubtedly, low-cost operation has been a very successful business model in the airline industry. Over the past 5 years, there has been a widespread departure from the original low-cost model introduced by Southwest Airlines. The low-cost carriers tended to follow a differentiation strategy as opposed to cost leadership on which the original low-cost model was based. The objective of this paper is to assess the degree by which the original low-cost model has been modified over the years, and to ascertain whether the degree of adherence to the original model has any impact on the profit level of low-cost airlines. The performance and business models of ten longer-established US and European low-cost carriers are analysed and evaluated against the original model of Southwest Airlines. Analysis indicates that although an increasing number of "hybrid" low-cost models are achieving low operating costs, offering low fares and returning attractive operating profit margins, there is a case for recommending adherence to the original model to ensure greater profitability. |
| Filesize | Link |
| Filetype | 1080/01441640500038748 (Mime Type: link) |
| Created On: | 12/12/2007 14:22 |
| Viewers | Everybody |
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