We study how European network carriers' (NCs') air networks evolved in response to competitive inroads by low-cost carriers (LCCs) over the last two decades. As LCCs added routes and increased their market shares, NCs reacted by increasing the centralisation of their networks and increasing the hub-and-spoke nature of their network structures. Although NCs engaged in other strategies to differentiate their services from LCCs, we do not find that these strategies were directly attributable to LCC market penetration. Given the importance of the NCs maintaining worldwide connectivity, our findings inform policy makers as to potential consequences from continued expansion by LCCs in Europe.
(2022). The Impact of Low-cost Carriers' Growth on the Air Networks of European Network Carriers [journal article - articolo]. In JOURNAL OF TRANSPORT ECONOMICS AND POLICY. Retrieved from https://hdl.handle.net/10446/232369
The Impact of Low-cost Carriers' Growth on the Air Networks of European Network Carriers
Scotti, Davide;Dresner, Martin
2022-01-01
Abstract
We study how European network carriers' (NCs') air networks evolved in response to competitive inroads by low-cost carriers (LCCs) over the last two decades. As LCCs added routes and increased their market shares, NCs reacted by increasing the centralisation of their networks and increasing the hub-and-spoke nature of their network structures. Although NCs engaged in other strategies to differentiate their services from LCCs, we do not find that these strategies were directly attributable to LCC market penetration. Given the importance of the NCs maintaining worldwide connectivity, our findings inform policy makers as to potential consequences from continued expansion by LCCs in Europe.File | Dimensione del file | Formato | |
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