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End of the free lunch? The responses of traditional European airlines to the low-cost carrier threat

By Nigel Dennis

Abstract

The short-haul operations of traditional European airlines such as British Airways and\ud Lufthansa have come under increasing pressure from the growth of low-cost carriers. This\ud paper examines their competitive responses. These are found to include reductions in\ud labour costs, greater use of regional aircraft and a run-down of secondary hubs. Minimum\ud stay requirements on cheap fares have been axed in many markets, while changes to the onboard\ud service and a move to direct-sell bring these airlines closer to the low-cost carrier\ud product. The network strength is largely maintained however, which appears a better\ud strategy than setting up a low-cost subsidiary

Topics: UOW1
OAI identifier: oai:westminsterresearch.wmin.ac.uk:4449
Provided by: WestminsterResearch

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