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In search of business model configurations that work: Lessons from the hybridization of Air Berlin and JetBlue

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  • Corbo, Leonardo

Abstract

This paper examines the rise of a distinct alternative to the traditional business model dichotomy between low-cost and full-service carriers (i.e. the hybrid business model) and questions its viability as an alternative for growth and profitability. Using a comparative assessment of business model innovation practices of two well-reputed carriers, Air Berlin and JetBlue, the paper highlights the importance of taking into account several components of a business model when deciding to experiment with it as these choices have important implications for an airline's performance. Our results suggest that, following the transition from a no-frills to a hybrid business model, a misalignment between the value proposition and the other elements of the business model will hinder an airline's ability to achieve a sustainable competitive advantage.

Suggested Citation

  • Corbo, Leonardo, 2017. "In search of business model configurations that work: Lessons from the hybridization of Air Berlin and JetBlue," Journal of Air Transport Management, Elsevier, vol. 64(PB), pages 139-150.
  • Handle: RePEc:eee:jaitra:v:64:y:2017:i:pb:p:139-150
    DOI: 10.1016/j.jairtraman.2016.09.010
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    Keywords

    Business models; Innovation; Hybrid carriers;

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