LOW-COST AIR CARRIERS COMPETING ON LONG-HAUL MARKETS? THE CASE STUDY OF SINGAPORE (SIN) – MEBOURNE (MEL) ROUTE
Keywords:
air services, low cost airlines, long-haul routes, competition, market concentration, product policyAbstract
The long-haul operation was perceived as the last bulwark, capturing the respective markets with air services for traditional carrier, however, low-cost air carriers have expanded on long-haul markets recently. In this paper, we compare the competitive weapons of air carriers which operated direct flights on the O-D route Singapore – Melbourne, long-haul low-cost carriers including. The carriers are compared in terms of frequencies, duration of flights, prices and offered classes to passengers. Considering the interlinkages among the carriers, whether based on ownership and/or horizontal cooperation, we reveal two dimensions of competition on the analysed O-D and recommend to tackle more.fragile edges in the triangle of cooperation, competition and coopetiion in the airline industry by regulatory and competition bodies.
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Universita In-ternazionale Degli Studi Sociali, 2015.
(3) KLOPHAUS, R.; CONRADY, R.; FICHERT, F. Low-cost carriers going hybrid:
Evidence from Europe. Jour-nal of Air Transport Management, 2012, 23, p. 54-58.
(4) TOMOVÁ, A.; RAMAJOVÁ, L. Frequent Flyer Pro-grams and Low-Cost Airlines:
Ongoing Hybridiza-tion? Procedia – Social and Behavioural Sciences, 2014, 110, p. 787-
795.
(5) MORELL, P. 2008. Can long-haul low-cost airlines be suc-cessful?, Research in
Transportation Economics 24(1): 61-67.
(6) MAERTENS, S. The new Eurowings´ flights from Germany – Breakthrough for ‘long
haul low cost‘ or just old wine in new bottles?
http://elib.dlr.de/96307/1/Maertens_New%20Eurowings%20Long%20Haul%20Product_
DLR-FW%20Discussion%20Paper%20March%202015_final.pdf, 2015.
(7) MATERNA, M.; TOMOVÁ, A. Long-haul low-cost air services: Revealing key
competitive features of airline within airline stratégy. Ekonomiczne Prob-lemy Uslug,
2016, 124, p. 151-162.
(8) FRANCIS, G., DENNIS, N., ISON, S., AND HUMPHREYS, I. The transferability of the
low-cost model to long-haul airline operations. Tourism Management, 2007, 28(2), p.
391–398.
(9) MOREIRA, M.E.; O´CONNELL, J.F.; WILLIAMS, G. The viability of long-haul, low
cost business models. Journal of Air Transport Studies, 2011. p. 69-91.
(10) PELS, E. Airline network competition: Full-service airlines, low-cost airlines and
long-haul markets. Research in Transportation Economics, 2008, 24(1), p. 68-74.
(11) WENSVEEN, J. G.; LEICK, R. The long-haul low-cost carrier: A unique business
model. Journal of Air Transport Management, 2009, 15(3), p. 127-133.
(12) DE PORET, M., O’CONNELL, J. F., WARNOCK-SMITH, D. The economic
viability oflong-haul low cost operations: Evidence from the transatlantic market. Journal
of Air Transport Management, 2015, 42, p. 272–281.
(13) NOVÁK, A.; NOVÁK SEDLÁČKOVÁ, A. 2015. International civil aviation
regulations. DOLIS: Bratislava, ISBN 978-80-8181-011-4200.
(14) BELOBABA, P., ODONI, A., BARNHART, C. The Global Airline Industry. 1st ed.
John Wiley & Sons, Ltd, 2009.
(15) ČOREJOVÁ, T., ROVŇANOVÁ, A., VALICA, M., FĽAK, J. On the Problem of
Market Concentration Evalua-tion. 12th International Conference, POSTPOINT 2017
Strategy, business and innovation, 23-24 Oc-tober 2017, Žilina, 2017.
(16) IATA Analyst Viewpoint. Does the S-curve still exist?
http://www.iata.org/publications/economics/Reports/McKinsey_SCurve.pdf, 2006.
(17) TOMOVÁ, A; NOVÁK SEDLÁČKOVÁ, A. Towards alli-ance´s cooperation of lowcost
carriers? New Trends in Process Control and Production Management: Proceedings
of the International Conference on Marketing Management, Trade, Financial and Social
Aspects of Business (MTS 2017), May 18-20, 2017, Košice, Slovak Republic and Tarnobrzeg,
Poland, London: Taylor&Francis Group, 2018, p. 383-389, ISBN: 978-1-138-
05885-9.
(18) NOVÁK SEDLÁČKOVÁ, A.; LOKAJ, P. 2017. Comparative analysis of U-Fly and
Value Alliance and global alliances, Transportation Research Procedia 28: 27-36.
(19) AZAR, J., SCHMALZ, M. C., TECU, I. Anti-Competitive Effects of Common
Ownership.
http://coller.tau.ac.il/sites/nihul_en.tau.ac.il/files/media_server/Recanati/management/conf
erences/finance/2015/113_Anti%20competitive%20effects%20-of-commonownership%
20.pdf., 2015.
(20) FU, X., LEI; Z., WANG, K.; YAN, J. Low cost carrier competition and route entry in
a emerging but regulated aviation market – The case of China. Transportation Research
Part A: Policy and Practice, 2015, 79, p. 3–16.
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Published
2018-04-23
How to Cite
Tomová, A., Sedláčková, A. N. ., & Lokaj, P. (2018). LOW-COST AIR CARRIERS COMPETING ON LONG-HAUL MARKETS? THE CASE STUDY OF SINGAPORE (SIN) – MEBOURNE (MEL) ROUTE. Perner’s Contacts, 13(2), 74–84. Retrieved from https://pernerscontacts.upce.cz/index.php/perner/article/view/519
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