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| Author: | Morrell, P. |
| Title: | Airlines within airlines: an analysis of US network airline responses to low cost carriers |
| Journal: | Journal of Air Transport Management
2005 : SEP, VOL. 11:5, p. 303-312 |
| Index terms: | air transport costs productivity USA |
| Language: | eng |
| Abstract: | The establishment of Low Cost Carrier offshoots by network carriers has three possible objectives: to spin off profitable businesses; to see off low cost competition in key markets; and to establish a test-bed for adapting low cost business processes to their mainline operations. It is suggested that US network carrier offshoots have failed on all three counts. The significant cost differences between network and Low Cost Carriers are identified, and it is shown that network carriers have made little inroads into closing this gap, whether or not they set up Low Cost Carrier offshoots. |
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