Connecting Flights in LCCs' Business Model

In light of the ‘hybridization’ process started by low-cost carriers (LCCs), this work contributes to the literature by first analyze the rationale underpinning the choice of introducing connecting flights in the typical point-to-point network of LCCs. By relying on Ryanair, the first European LCC in terms of passengers, we investigate how market, supply, and leg characteristics influence its decision to offer connections by means of two already existing flights. Results suggest that Ryanair is offering connecting flights on both non-directly offered markets and on markets that it already serves directly, thus relying on connecting flights to test whether there is sufficient demand to add new direct flights on the considered market. Additionally, the probability to offer connecting flights is higher when legs’ frequency is higher and when its market share on the two legs is low. Evidence also shows that the probability to introduce connecting flights is negatively affected by market distance, routing factor, and the presence of direct flights.