Assessment of the Evolving Low-Cost Business Model for the Future Importance of U.S. Secondary Airports

Abstract

Verbatim from Embry-Riddle Scholarly Commons. Not paraphrased, not summarized.

Airline deregulation caused a profound reshape in the aviation industry. The liberalization of the aviation sector resulted in a favorable environment for the emergence of low-cost carriers (LCCs). Following deregulation, airlines saw many attempts at their business strategies to gain more passengers in the air transportation market. To capture additional market shares of passenger traffic, the business models of LCCs have evolved to mirror the more common business models employed by the traditional legacy airlines. The purpose of this paper was to examine what effect, if any, exists between LCCs’ market share of passenger enplanements at secondary airports and their business models in a multi-airport system in the U.S. between the years of 1997 to 2017. A chi-square test was used to determine if the change in LCCs’ business model was significant, while descriptive analysis, including socioeconomic, demographic, and comparative analyses, was used to explain these changes. The findings of this study suggested that LCCs’ market share of passenger enplanements at U.S secondary airports was significant, partially because of the change in their business models. However, a combination of factors, including an increase in population, employment, and personal incomes, may have contributed to this significant finding.

Authors

• Dinler, Nurettin Embry-Riddle Aeronautical University
• Rankin, William B Embry-Riddle Aeronautical University

Keywords

• Low-Cost Carriers (LCCs)
• Secondary Airports
• Business Models
• Business Administration, Management, and Operations
• Tourism and Travel