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International market entry strategies of EU and Asia-Pacific low fare airlines

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  • Albers, Sascha
  • Heuermann, Caroline
  • Koch, Benjamin
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    Abstract

    We employ Dunning's eclectic paradigm (OLI) to shed light onto low fare airlines' (LFA) internationalization strategies. In addition to 31 European LFA, we also analyze the internationalization strategies of 41 LFA in the Asia-Pacific region. The results indicate that in Europe rather homogenous groups of LFA emerge with regard to their internationalization strategies and that capital and ownership structure as well as relative timing seems to be especially closely related to their entry modal choice. Even though the Asia-Pacific airlines operate under a significantly less liberal regulatory regime, their internationalization strategies resemble those of their European counterparts. We formulate propositions for future research and discuss inferences for the use of the OLI paradigm in further studies of airline internationalization. --

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    Bibliographic Info

    Paper provided by University of Cologne, Department of Business Policy and Logistics in its series Working Paper Series with number 106.

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    Date of creation: 2009
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    Handle: RePEc:zbw:ucdbpl:106

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    Keywords: Low Cost Carrier; Europe; Asia-Pacific; Internationalization; Strategy; Eclectic Paradigm;

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    1. Joanne Roberts, 1999. "The Internationalisation of Business Service Firms: A Stages Approach," The Service Industries Journal, Taylor & Francis Journals, Taylor & Francis Journals, vol. 19(4), pages 68-88, October.
    2. Morrell, Peter, 2005. "Airlines within airlines: An analysis of US network airline responses to Low Cost Carriers," Journal of Air Transport Management, Elsevier, Elsevier, vol. 11(5), pages 303-312.
    3. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 117(1), pages 30-64, March.
    4. John Cantwell & Rajneesh Narula, 2001. "The Eclectic Paradigm in the Global Economy," International Journal of the Economics of Business, Taylor & Francis Journals, Taylor & Francis Journals, vol. 8(2), pages 155-172.
    5. Gillen, David & Morrison, William, 2003. "Bundling, integration and the delivered price of air travel: are low cost carriers full service competitors?," Journal of Air Transport Management, Elsevier, Elsevier, vol. 9(1), pages 15-23.
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