ABSTRACT

As the aviation industry enters its consolidation stage, the definition of the right business model becomes crucial. Traditionally, four main business models in passenger air transport are identified: network carrier, charter carrier, regional carrier and low cost carrier. By increasing competition, many companies transform themselves and adopt elements of other business models. For example Swiss International Air Lines, a traditional network carrier, uses pricing models and service concepts of low cost carriers whereas Air Berlin, a new entering low cost carrier, provides service standards equal to average network carriers. Although most charter airlines are owned by tour operators, they more and more sell seats on an individual base. The question arises whether these are first signs of a convergence of airline business models or whether new types of models will emerge. This contribution draws on theories and various case studies. It is based on the results and data of an earlier study (Bieger et al., 2002) which have been further developed.