Grounded: characterising the market exit of European low cost airlines
Lucy Budd
Graham Francis
Ian M. Humphreys
Stephen Ison
2134/13166
https://repository.lboro.ac.uk/articles/journal_contribution/Grounded_characterising_the_market_exit_of_European_low_cost_airlines/9451205
The aim of this paper is to undertake a comprehensive study of LCC market entry
and exit in Europe between 1992 and 2012. In the 20 year period between 1992 and
2012, 43 low cost carriers (LCCs) have taken advantage of the progressive
liberalisation of the European aviation market and commenced scheduled flight
operations within the continent. Of these 43, only 10 remain operational, a failure
rate of 77%. This paper contributes to extant literature on LCCs by examining the
market entry, business practices, operating longevity and fate of failed operators to
characterise European LCC market exit. Drawing on the findings of a detailed
continental-wide study, the paper identifies that an airline’s start-up date, the nature
and size of its operation and the size and composition of its aircraft fleet are key
factors which influence LCC success and failure. The implications for both European
and emerging LCC markets are discussed.
2013-09-18 10:24:49
Low cost carriers (LCCs)
Market exit
Europe
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