IDEAS home Printed from https://ideas.repec.org/a/aye/journl/v11y2025i1p61-73.html
   My bibliography  Save this article

Strategic Transformation in Airline Business Model and Management from Low-Cost Models to Hybrid Structures

Author

Listed:
  • Fatih KARAMAN

    (Department of Aviation Management, Istanbul Medipol University, Istanbul, Türkiye)

Abstract

The aim of this study is to define the strategic transformation in the transition to the hybrid business model, which has been used increasingly recently, by explaining the most used business models applied by airline companies. In addition, important parts of the traditional and low-cost business models used by airline companies will be examined, the differences will be emphasized and the factors why the transformation to hybrid structures will be em-phasized. The study also examines the business models applied by two leading airline com-panies in Turkey by making a comparison. In fact, it is understood that these companies, which choose different business models, also benefit from the more current and effective hybrid business structure due to certain conditions. The study also gradually explains how business models are converted to hybrid models. In the first part of the study, the business models applied by airline companies, which are among the most important businesses in the civil aviation sector, from the past to the present will be explained. In the next part, the business model of low-cost airline companies, which is used a lot, will be discussed in detail and the foundations of the subject will be tried to be established. Then, detailed information will be given about how the transition from low-cost business models to hybrid structures and its examples in Turkey today. In the conclusion section, the ideas obtained as a result of the explanations made and future predictions will be made. It is stated as a limitation that the information used in the study is taken from the reports submitted by the relevant civil aviation authorities and companies, therefore interpretations can only be made according to the available data.

Suggested Citation

  • Fatih KARAMAN, 2025. "Strategic Transformation in Airline Business Model and Management from Low-Cost Models to Hybrid Structures," Yildiz Social Science Review, Yildiz Technical University, vol. 11(1), pages 61-73, June DOI:.
  • Handle: RePEc:aye:journl:v:11:y:2025:i:1:p:61-73
    as

    Download full text from publisher

    File URL: https://yssr.yildiz.edu.tr/storage/upload/pdfs/1751037092-en.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hunter, Laurie, 2006. "Low Cost Airlines:: Business Model and Employment Relations," European Management Journal, Elsevier, vol. 24(5), pages 315-321, October.
    2. Lawton, Thomas C. & Solomko, Stanislav, 2005. "When being the lowest cost is not enough: Building a successful low-fare airline business model in Asia," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 355-362.
    3. Pereira, Bruno Alencar & Caetano, Mauro, 2015. "A conceptual business model framework applied to air transport," Journal of Air Transport Management, Elsevier, vol. 44, pages 70-76.
    4. José Alberto Martínez-González & Eduardo Parra-López & Almudena Barrientos-Báez, 2021. "Young Consumers’ Intention to Participate in the Sharing Economy: An Integrated Model," Sustainability, MDPI, vol. 13(1), pages 1-21, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azadian, Farshid & Vasigh, Bijan, 2019. "The blurring lines between full-service network carriers and low-cost carriers: A financial perspective on business model convergence," Transport Policy, Elsevier, vol. 75(C), pages 19-26.
    2. Delaplace, Marie & Dobruszkes, Frédéric, 2015. "From low-cost airlines to low-cost high-speed rail? The French case," Transport Policy, Elsevier, vol. 38(C), pages 73-85.
    3. Eli Moen, 2017. "Weakening trade union power," Transfer: European Review of Labour and Research, , vol. 23(4), pages 425-439, November.
    4. Stoenescu Cristina & Gheorghe Camelia Monica, 2017. "Hybrid” airlines – Generating value between low-cost and traditional," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 577-587, July.
    5. Chung, Jin Young & Whang, Taehee, 2011. "The impact of low cost carriers on Korean Island tourism," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1335-1340.
    6. Dobruszkes, Frédéric, 2009. "New Europe, new low-cost air services," Journal of Transport Geography, Elsevier, vol. 17(6), pages 423-432.
    7. Jankiewicz, Jacek & Huderek-Glapska, Sonia, 2016. "The air transport market in Central and Eastern Europe after a decade of liberalisation – Different paths of growth," Journal of Transport Geography, Elsevier, vol. 50(C), pages 45-56.
    8. Kuebart, Andreas, 2019. "Geographies of relational coordination in venture capital firms," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(11), pages 2206-2226.
    9. Wang, Kun & Tsui, Wai Hong Kan & Li, Lan-Bing & Lei, Zheng & Fu, Xiaowen, 2020. "Entry pattern of low-cost carriers in New Zealand - The impact of domestic and trans-Tasman market factors," Transport Policy, Elsevier, vol. 93(C), pages 36-45.
    10. Urban, Marcia & Klemm, Martin & Ploetner, Kay Olaf & Hornung, Mirko, 2018. "Airline categorisation by applying the business model canvas and clustering algorithms," Journal of Air Transport Management, Elsevier, vol. 71(C), pages 175-192.
    11. Truong, Dothang & Pan, Jing Yu & Buaphiban, Thapanat, 2020. "Low cost carriers in Southeast Asia: How does ticket price change the way passengers make their airline selection?," Journal of Air Transport Management, Elsevier, vol. 86(C).
    12. Ales Novak, 2014. "Business Model Literature Overview," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 79-130.
    13. Dziedzic, Marcin & Njoya, Eric T. & Warnock-Smith, David & Hubbard, Nick, 2020. "Determinants of air traffic volumes and structure at small European airports," Research in Transportation Economics, Elsevier, vol. 79(C).
    14. Soyk, Christian & Ringbeck, Jürgen & Spinler, Stefan, 2017. "Long-haul low cost airlines: Characteristics of the business model and sustainability of its cost advantages," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 215-234.
    15. Reis, Vasco & Silva, João, 2016. "Assessing the air cargo business models of combination airlines," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 250-259.
    16. Laïla Benraiss-Noailles & Catherine Viot, 2017. "Attractiveness of low-cost companies? The Influence of the employer brand on the attractiveness of low-cost companies [L' attractivité des entreprises low-cost ? Le rôle du Capital-Marque Employeur," Post-Print hal-01803635, HAL.
    17. Fasone, Vincenzo & Kofler, Lukas & Scuderi, Raffaele, 2016. "Business performance of airports: Non-aviation revenues and their determinants," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 35-45.
    18. Dominik Punda & Malgorzata Jasiulewicz-Kaczmarek & Jacek Dziwulski, 2021. "Economization Methods Used by Low-Cost Airlines – An Overview," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 301-310.
    19. Baum, Tom, 2012. "Working the skies: Changing representations of gendered work in the airline industry, 1930–2011," Tourism Management, Elsevier, vol. 33(5), pages 1185-1194.
    20. Lu, Hua-An & Mao, Yun-Ru, 2015. "Evaluation of airport conditions to attract foreign low cost carriers: A case study of Taiwan," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 297-305.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F30 - International Economics - - International Finance - - - General
    • G00 - Financial Economics - - General - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aye:journl:v:11:y:2025:i:1:p:61-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Murat DONDURAN (email available below). General contact details of provider: https://edirc.repec.org/data/ibytutr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.