The economic viability of long-haul low cost operations: Evidence from the transatlantic market
The recent strong performance of long-haul low-cost carriers AirAsia X and JetStar have re-raised the question of the long-term feasibility of long-haul low-cost operations. For the first time, this study contains a detailed financial assessment of low-cost operations on the transatlantic market using best-in class aircraft technology, the Boeing 787. The study's main findings demonstrate how challenging the successful running of a European long-haul low-cost carrier can be. In particular, on-going operating profit appears to be very sensitive to variations in demand and fuel prices, despite the use of new, highly efficient B787s. The findings show any prospective long-haul low-cost carrier that pursuing a demand focused network strategy can ensure financial viability. This involves the creation of higher seating densities, higher cargo revenues and additional ancillary revenues.
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- Record URL:
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/oclc/31005945
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Supplemental Notes:
- Abstract reprinted with permission of Elsevier.
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Authors:
- De Poret, M
- O'Connell, J F
- Warnock-Smith, D
- Publication Date: 2015-1
Language
- English
Media Info
- Media Type: Digital/other
- Features: References; Tables;
- Pagination: pp 272-281
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Serial:
- Journal of Air Transport Management
- Volume: 42
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 0969-6997
- Serial URL: http://www.sciencedirect.com/science/journal/09696997
Subject/Index Terms
- TRT Terms: Air travel; Business practices; Economic factors; Finance; International transportation; Low cost carriers
- Identifier Terms: AirAsia (Airline); Boeing 787 aircraft; Jetstar Airways
- Subject Areas: Aviation; Economics; I10: Economics and Administration;
Filing Info
- Accession Number: 01552101
- Record Type: Publication
- Files: TRIS
- Created Date: Jan 29 2015 9:20AM