Network Strategies of European Low Cost and Hybrid(ized) Airlines: Is Ryanair Unique?
Network Strategies of European Low Cost and Hybrid(ized) Airlines: Is Ryanair Unique?
Author(s): Anna Tomová, Ivana KirschnerováSubject(s): Economy, Business Economy / Management
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: airlines; network; strategy; connectivity; concentration; geographical spread; economies of scale
Summary/Abstract: The paper analyses network strategies of eleven European low cost and hybrid(ized)airlines between 2009 and 2014 focusing on spatial (geographical) attributes. Two-dimensionaldescription of airline network evolution identified three of four possible spatialnetwork strategies which were followed by the airlines – expansion, contraction andcondensation; revealing expansion as a prevailing one. Ryanair as an expanding airlineincreased transnational nature of its network (confirmed by geographical spread indices),however out of the EEA region Ryanair expanded least within the expanding airlines.Against the compared expanding counterparts, the only Ryanair increased exploitation ofits network connectivity potential. Ryanair had the lowest levels of network concentrationwhat coincides with an assumption about deconcentrated network typical for pure (ultra)low cost carrier. Our findings support the statement that economies generated by spatialconnectivity of airline networks play a crucial role in competition of airlines as theirbusiness is in principle spatially determined.
Journal: Ekonomiczne Problemy Usług
- Issue Year: 2015
- Issue No: 120
- Page Range: 119-138
- Page Count: 20
- Language: English