ABSTRACT
European Network Carriers have to face an increasingly challenging competitive environment. Market liberalization leads to new formats of competition in the European Airline industry. The low cost carrier model especially threatens the business model of traditional network carriers. Furthermore the hub and spoke structure of network carriers in combination with their embeddedness in global airline alliances has increased their vulnerability to schedule problems as well as external disturbances like 9/11, the gulf war, or SARS. In light of this the business model of European network carriers has to be evaluated and further developed to provide sustainable competitiveness.
