Abstract
This paper examines the rise of a distinct alternative to the traditional business model dichotomy between low-cost and full-service carriers (i.e. the hybrid business model) and questions its viability as an alternative for growth and profitability. Using a comparative assessment of business model innovation practices of two well-reputed carriers, Air Berlin and JetBlue, the paper highlights the importance of taking into account several components of a business model when deciding to experiment with it as these choices have important implications for an airline's performance. Our results suggest that, following the transition from a no-frills to a hybrid business model, a misalignment between the value proposition and the other elements of the business model will hinder an airline's ability to achieve a sustainable competitive advantage.
Original language | English |
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Pages (from-to) | 139-150 |
Number of pages | 12 |
Journal | Journal of Air Transport Management |
Volume | 64 |
DOIs | |
Publication status | Published - Sept 2017 |
Keywords
- Business models
- Hybrid carriers
- Innovation