ABSTRACT
A business model describes a company’s purpose, its approach to doing business, its brand proposition and strategic corporate objectives. This chapter examines the critical operational and managerial (e.g. brand proposition and product differentiation) characteristics that differentiate airlines as being full service; low cost (and ultra-low cost); charter; regional; hybrid and specialist operators. Business models developed by each airline defines the target customers, the route network, choice of aircraft, different revenue streams and forecasts, marketing strategy and the operational cost structure. Case studies are provided to illustrate different airline business models.
