Change search
ReferencesLink to record
Permanent link

Direct link
Can the low cost boom in aviation reach long distance destinations?: MBA thesis in marketing
University of Gävle, Faculty of Education and Business Studies, Department of Business and Economic Studies.
2011 (English)Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Aim

The commercial success of some low cost airlines presents the low cost model as very attractive. Until now their main focus has been on short-haul routes, but it is no surprise that they show an interest in entering the long-haul routes market as recent trends are very promising. The aim of this study is to analyze whether the low cost business model is applicable for long-haul routes, which parts of the model are transferable to long-haul services, what competitors responses might be and whether there is potential for low cost airlines operating in Scandinavia to gain frequent, well paying and demanding business travelers on their future long-haul routes.

Method

In this study a survey method with structured questionnaire distributed by e-mail has been used to collect the primary data. The main source of secondary data has been airline industry literature, newspapers, magazines and data provided by aviation statistical organizations. The empirical part of this study is conducted as a quantitative and qualitative study. Intention of empirical part is to find detailed information and describe business travelers’ behavior, corporate travel policies, business trips pattern and attitude towards low cost airlines.

Conclusions

The cost savings that low cost airlines achieved in the short-haul market will be much more difficult to achieve to long-haul services. In terms of areas where airlines can achieve cost leadership labor costs is certainly the best area to attack. To be successful, low cost airlines would have to adopt some elements of the traditional business model. But the success of long-haul low cost airlines will not only depend on achieving cost advantages. Availability of leisure time for long-haul trips and response of competitors will be other factors.

Suggestions for future research

A deeper analysis of low cost long-haul airlines potential could be possible with survey among leisure travelers and VFR (visiting friends and relatives) segment.

Contribution of the Study

This study has arrived at the conclusion that in order to be successful on long-haul routes low cost airlines would have to keep most of the features of traditional airlines. Low cost long-haul airlines would most probably be successful in pure leisure routes, ethnic markets, during peak season and on dense point to point destinations.

Place, publisher, year, edition, pages
2011. , 54 p.
Keyword [en]
Airlines, low cost, long-haul, travel manager, corporate travel policy
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hig:diva-8582Archive number: E3BA: DiVA 19/2011OAI: oai:DiVA.org:hig-8582DiVA: diva2:404141
Subject / course
Business administration
Educational program
Business administration – master’s programme (one year)
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2011-06-20 Created: 2011-03-16 Last updated: 2011-06-20Bibliographically approved

Open Access in DiVA

fulltext(4450 kB)1262 downloads
File information
File name FULLTEXT01.pdfFile size 4450 kBChecksum SHA-512
55ccf7efea602220e63c1e7bb1cff2e53edba2c364bd6220413b78d1d99a736d7cddfc09ca1cf898cb8ad4315a7e471206852d4e193eccaf6c537271755b3557
Type fulltextMimetype application/pdf

By organisation
Department of Business and Economic Studies
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 1262 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 772 hits
ReferencesLink to record
Permanent link

Direct link