Research Article

Evaluation of African Low-Cost Carriers' Business Models

Volume: 3 Number: 1 July 15, 2023

Evaluation of African Low-Cost Carriers' Business Models

Abstract

In the airline transportation industry, profitability is low, costs are high, and competition is intense. In such an environment, the ability of airlines to sustain their operations and increase their market share is closely tied to the business model they adopt. This study evaluates the business models of airlines based on criteria developed by Klophaus et al. and examines seven low-cost airlines operating in the African market in light of these criteria. The study aims to explore the extent to which low-cost airlines blend their characteristics with those of traditional carriers. Data used for evaluating the airlines' business models were obtained from their official websites. According to the findings of the study, a significant portion of low-cost airlines has transformed into hybrid airlines, where budget carrier features dominate. African airline managers should carefully review operations to establish the right balance between cost efficiency and meeting customer needs. Due to its dynamic structure, the aviation industry requires flexibility and adaptation in order to respond to market changes, competitive pressures and changing customer preferences.

Keywords

References

  1. AFRAA (2021). Air transport report 2020, https://afraa.org/wp-content/uploads/2021/06/AFRAA-AIR-TRANSPORTREPORT-Q1_-2021.pdf
  2. Bieger, T., and Agosti, S. (2005). Business models in the airline sector- evolution and perspectives, Köln: Kölner Wissenscaftsverlag
  3. Doganis, R. (2006). The airline business, New York: Routledge
  4. Francis, G., Fidato, A., and Humphreys, I.(2003), Airport-airline interaction: The impact of low-cost carriers on two European airports, Journal of Air Transport Management, 9, 267-273
  5. Gillen, D. and Lall, A.(2004), Competitive advantage of low-cost carriers: Some implications for airports, Journal of Air Transport Management, 10, 41-50
  6. Klophaus, R., Conrady, R. and Fichert, F.(2012). Low cost carriers going hybrid: Evidence from Europe, Journal of Air Transport Management, 23, 54-58
  7. Magretta, J. (2002). Why business models matter, Harvard Business Review, 3-8
  8. Mason, K. and Morrison, W.(2008). Towards a means of consistently comparing airline business models with an application to the “low cost” airline sector, Research in Transportation Economics, 24(1), 75-84

Details

Primary Language

English

Subjects

Air Transportation and Freight Services

Journal Section

Research Article

Authors

Publication Date

July 15, 2023

Submission Date

May 30, 2023

Acceptance Date

July 8, 2023

Published in Issue

Year 2023 Volume: 3 Number: 1

APA
Ustaömer, T. C. (2023). Evaluation of African Low-Cost Carriers’ Business Models. Research in Aviation Management (RAM), 3(1), 16-22. https://izlik.org/JA67HM85JU
AMA
1.Ustaömer TC. Evaluation of African Low-Cost Carriers’ Business Models. Research in Aviation Management (RAM). 2023;3(1):16-22. https://izlik.org/JA67HM85JU
Chicago
Ustaömer, Temel Caner. 2023. “Evaluation of African Low-Cost Carriers’ Business Models”. Research in Aviation Management (RAM) 3 (1): 16-22. https://izlik.org/JA67HM85JU.
EndNote
Ustaömer TC (July 1, 2023) Evaluation of African Low-Cost Carriers’ Business Models. Research in Aviation Management (RAM) 3 1 16–22.
IEEE
[1]T. C. Ustaömer, “Evaluation of African Low-Cost Carriers’ Business Models”, Research in Aviation Management (RAM), vol. 3, no. 1, pp. 16–22, July 2023, [Online]. Available: https://izlik.org/JA67HM85JU
ISNAD
Ustaömer, Temel Caner. “Evaluation of African Low-Cost Carriers’ Business Models”. Research in Aviation Management (RAM) 3/1 (July 1, 2023): 16-22. https://izlik.org/JA67HM85JU.
JAMA
1.Ustaömer TC. Evaluation of African Low-Cost Carriers’ Business Models. Research in Aviation Management (RAM). 2023;3:16–22.
MLA
Ustaömer, Temel Caner. “Evaluation of African Low-Cost Carriers’ Business Models”. Research in Aviation Management (RAM), vol. 3, no. 1, July 2023, pp. 16-22, https://izlik.org/JA67HM85JU.
Vancouver
1.Temel Caner Ustaömer. Evaluation of African Low-Cost Carriers’ Business Models. Research in Aviation Management (RAM) [Internet]. 2023 Jul. 1;3(1):16-22. Available from: https://izlik.org/JA67HM85JU

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