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Gauging innovation worth for airlines

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  • Nicolau, Juan Luis
  • Santa-María, María Jesús

Abstract

This article examines the extent to which innovations enhance airline value. For this purpose, we measure the effect that airline innovations have on its market value. An increase in the market value is significantly found when an airline announces an innovation. Not all innovative actions are equal; while innovations related to “advanced customer segmentation†and “new technologies†bring about similar gains, thereby having the same effects on the airline value, when compared to the innovative new business models, the formers significantly outperform the latter.

Suggested Citation

  • Nicolau, Juan Luis & Santa-María, María Jesús, 2012. "Gauging innovation worth for airlines," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 9-11.
    • Handle: RePEc:eee:jaitra:v:20:y:2012:i:c:p:9-11
    DOI: 10.1016/j.jairtraman.2011.08.005
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    References listed on IDEAS

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    3. Franke, Markus, 2007. "Innovation: The winning formula to regain profitability in aviation?," Journal of Air Transport Management, Elsevier, vol. 13(1), pages 23-30.
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    Cited by:

    1. Nicolau, Juan Luis & Santa-María, María Jesús, 2012. "Effect of innovation on airlines' operating leverage: A Spanish case study," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 44-46.
    2. Nicolau, Juan Luis & Sharma, Abhinav, 2022. "A review of research into drivers of firm value through event studies in tourism and hospitality: Launching the Annals of Tourism Research curated collection on drivers of firm value through event stu," Annals of Tourism Research, Elsevier, vol. 95(C).

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