In search of business model configurations that work: lessons from the hybridization of Air Berlin and JetBlue

Leonardo Corbo

Research output: Contribution to journalArticlepeer-review

37 Citations (Scopus)

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 languageEnglish
Pages (from-to)139-150
Number of pages12
JournalJournal of Air Transport Management
Volume64
DOIs
Publication statusPublished - Sept 2017

Keywords

  • Business models
  • Hybrid carriers
  • Innovation

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