The economic viability of long-haul low cost operations: Evidence from the transatlantic market

Poret, M De; O’Connell, John F.; Warnock-Smith, David

doi:10.1016/j.jairtraman.2014.11.007

Cited by 51 publications

(40 citation statements)

References 5 publications

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“…Notable changes witnessed within the LCC industry include more focus on attracting business travellers (by providing more flexibility in terms of ticket sales and priority boarding), engagement in code sharing and membership of alliances, and the addition of 'frills' such as seat allocation (Aviation Strategy, 2014;de Wit and Zuidberg, 2012;Klophaus et al, 2012). Moreover, there has also been considerable discussion about the viability of long-haul operations, particularly with more efficient longer range aircraft such as the Boeing 787 Dreamliner (Daft and Albers, 2012;Morrell, 2008;Poret et al, 2015).…”

Section: Development Of the Lcc Sectormentioning

confidence: 99%

Low cost carriers and the changing fortunes of airports in the UK

Halpern

Graham

Dennis

2016

Research in Transportation Business & Management

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This paper investigates how low cost carrier (LCC) developments have affected the traffic and financial performance of UK airports from 2002 to 2014. Considerable growth in traffic was experienced from 2002 to 2007, especially at regional airports as a result of LCC expansion. This was replaced with a more volatile period from 2008 to 2014 where many of the regional airports that experienced the greatest increases in traffic during the early years, then experienced the largest reductions. This has clearly had an impact on their financial well-being, resulting in reduced profits for many airports. It has also meant that many regional airports that seemed like attractive investments as a result of LCC expansion are now less financially appealing, especially given that the LCC sector in the UK appears to be shifting capacity to larger regional airports, and in some cases, London airports.

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Section: Development Of the Lcc Sectormentioning

confidence: 99%

Low cost carriers and the changing fortunes of airports in the UK

Halpern

Graham

Dennis

2016

Research in Transportation Business & Management

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“…Second, market perspectives for this so-called long-haul, lowcost model in Europe may become viable due to technological innovations, such as the B787, operated by Norwegian Long Haul (De Poret, O'Connell, and Warnock-Smith, 2015). Such operations may further develop into low-cost hub-and-spoke systems, as demonstrated, for example, by Air Asia X.…”

Section: Eu Flag Carriers Under Pressurementioning

confidence: 99%

In the wake of liberalisation: long-term developments in the EU air transport market

Burghouwt¹,

Wit

2015

Transport Policy

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“…In relation to this, the CEO of Gatwick Airport argues that their "diverse short-and long-haul airline mix" improves the airport's suitability to host a self-connection platform (The Independent, 2015). Another argument in support of that idea is the development of low-cost long-haul services (De Poret et al, 2015) that effectively expands the scope of LCC self-connectivity to long-haul markets as new opportunities arise for passengers to find cheap fares in these longer routes. The negotiations between Ryanair and Norwegian (who operates long-haul frequencies) in regards to possible collaboration clearly indicate that airlines are keen to develop those travel opportunities (CAPA, 2016).…”

Section: Introductionmentioning

confidence: 99%

Measuring the potential for self-connectivity in global air transport markets: Implications for airports and airlines

Suau-Sánchez

Voltes-Dorta

Rodríguez-Déniz

2016

Journal of Transport Geography

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One of the strategies that air travellers employ to save money is self-connectivity, i.e. travelling with a combination of tickets where the airline/s involved do not handle the transfer themselves. Both airports and airlines, particularly low-cost carriers, have recently started catering to the needs of this type of passengers with the introduction of transfer fees or the development of self-connection platforms. The evidence provided by the existing literature, however, suggests that the degree of implementation of these strategies falls short of its true potential. In order to investigate how much self-connectivity could be observed in global air transport markets, this paper develops a forecasting model based on a zero-inflated Poisson regression on MIDT data. We identify the airports that have the highest potential to facilitate self-connections, as well as the factors that hinder or facilitate the necessary airline agreements at major locations. The results from this paper have many implications in regards to the widespread implementation of self-connection services and the future of the air travel industry.

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The economic viability of long-haul low cost operations: Evidence from the transatlantic market

Cited by 51 publications

References 5 publications

Low cost carriers and the changing fortunes of airports in the UK

Low cost carriers and the changing fortunes of airports in the UK

In the wake of liberalisation: long-term developments in the EU air transport market

Measuring the potential for self-connectivity in global air transport markets: Implications for airports and airlines

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