Revenue characteristics of long-haul low cost carriers (LCCs) and differences to full-service network carriers (FSNCs)

Low cost carriers (LCC) have smaller cost advantages on the long- than on the short-haul compared to network carriers (FSNCs). Hence, revenue competitiveness is critical. To evaluate long-haul LCC performance, this paper contributes a new metric for bench-marking the revenue per equivalent flight capacity. Second, a revenue model combining traffic, fare, load factor, and seat data is developed. Third, the revenue per flight capacity is evaluated across selected city-pairs. Long-haul LCCs earn revenue per flight capacity comparable to FSNCs. Lower direct yields compensated by fewer low-yield connecting passengers and significantly more passengers per aircraft have been identified as key factors.

Language

  • English

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Filing Info

  • Accession Number: 01667102
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 21 2018 2:32PM