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Market entry of a low cost airline and impacts on the Brazilian business travelers

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  • Evangelho, Fabio
  • Huse, Cristian
  • Linhares, Alexandre

Abstract

The wave of airline deregulation has brought out a worldwide phenomenon: low-cost carriers. A recent case is that of Brazil where after 3 years of operation Gol has 20% of the domestic market. The paper investigates whether there is a significant distinction between the market segment of business travelers using the low-cost entrant and those using the full-service carriers, and also looks at the perception of these travelers regarding the key attributes of the services offered. The findings indicate that there is segmentation in the business travel market, suggesting that the preference for traditional airlines is largely a matter of culture of larger organizations, rather than reflecting any type of prejudice concerning the low-cost model. The results are compared to similar studies conducted with UK business travelers.

Suggested Citation

  • Evangelho, Fabio & Huse, Cristian & Linhares, Alexandre, 2005. "Market entry of a low cost airline and impacts on the Brazilian business travelers," Journal of Air Transport Management, Elsevier, vol. 11(2), pages 99-105.
    • Handle: RePEc:eee:jaitra:v:11:y:2005:i:2:p:99-105
    DOI: 10.1016/j.jairtraman.2004.09.005
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    References listed on IDEAS

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    Cited by:

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    8. Milioti, Christina P. & Karlaftis, Matthew G. & Akkogiounoglou, Eleni, 2015. "Traveler perceptions and airline choice: A multivariate probit approach," Journal of Air Transport Management, Elsevier, vol. 49(C), pages 46-52.
    9. Fourie, Colette & Lubbe, Berendien, 2006. "Determinants of selection of full-service airlines and low-cost carriers—A note on business travellers in South Africa," Journal of Air Transport Management, Elsevier, vol. 12(2), pages 98-102.
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    11. Loh, Hui Shan & Yuen, Kum Fai & Wang, Xueqin & Surucu-Balci, Ebru & Balci, Gökcay & Zhou, Qingji, 2020. "Airport selection criteria of low-cost carriers: A fuzzy analytical hierarchy process," Journal of Air Transport Management, Elsevier, vol. 83(C).
    12. Kuljanin, Jovana & Paskota, Mira & Kalić, Milica, 2018. "Methodological framework for the investigation on the rapidly growing air travel market – An application of multivariate statistical analysis," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 86-91.
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    14. Concepción Román & Raquel Espino & Juan Martín & Ofelia Betancor & Gustavo Nombela, 2008. "Analyzing Mobility in Peripheral Regions of the European Union: The Case of Canarias-Madeira-Azores," Networks and Spatial Economics, Springer, vol. 8(2), pages 141-160, September.
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