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

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  • 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
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    References listed on IDEAS

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    3. 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.
    4. Hunter, Laurie, 2006. "Low Cost Airlines:: Business Model and Employment Relations," European Management Journal, Elsevier, vol. 24(5), pages 315-321, October.
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    Keywords

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    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

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