search query: @indexterm Cost reduction / total: 253
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| Author: | Tretheway, M. W. |
| Title: | Distortions of airline revenues: why the network airline business model is broken |
| Journal: | Journal of Air Transport Management
2004 : JAN, VOL. 10:1, p. 3-14 |
| Index terms: | Airlines Networks Competition Cost reduction |
| Freeterms: | Low-cost airlines |
| Language: | eng |
| Abstract: | This paper looks at the inherent flaws that have emerged in the business models that have been pursued by the major network airlines. The business model adopted by the low-cost carriers is more robust and has gradually undermined the ability of the network carriers to practice the price discrimination needed for them to recover their full costs. The paper points to a number of modifications that need to be made to the full service network carriers' business model if it is going to maximise this share. |
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