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An empirical analysis of airline business model convergence

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  • Daft, Jost
  • Albers, Sascha

Abstract

Based on a sample of 26 European passenger airlines, this study analyzes the development of airline business models over time. We used various distance measures to calculate concrete differentiation levels among these airlines between 2004 and 2012. The results indicate increasing similarity among these airlines, which lends support to the generally assumed convergence trend. The present paper complements the mostly qualitative and anecdotal literature on convergence in the airline industry, empirically shows actual adaptations in airlines' business models, and provides a platform for further research in the fields of empirical convergence analysis and corresponding strategic airline management.

Suggested Citation

  • Daft, Jost & Albers, Sascha, 2014. "An empirical analysis of airline business model convergence," Working Paper Series 112, University of Cologne, Department of Business Policy and Logistics.
    • Handle: RePEc:zbw:ucdbpl:112
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    References listed on IDEAS

    as
    1. Daft, Jost & Albers, Sascha, 2012. "A conceptual framework for measuring airline business model convergence," Working Paper Series 110, University of Cologne, Department of Business Policy and Logistics.
    2. Klophaus, Richard & Conrady, Roland & Fichert, Frank, 2012. "Low cost carriers going hybrid: Evidence from Europe," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 54-58.
    3. Daft, Jost & Albers, Sascha, 2013. "A conceptual framework for measuring airline business model convergence," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 47-54.
    4. Daft, Jost & Albers, Sascha, 2012. "A profitability analysis of low-cost long-haul flight operations," Journal of Air Transport Management, Elsevier, vol. 19(C), pages 49-54.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Airline business models; Convergence; Similarity measurement;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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