Airline business models are evolving. LCCs and FSCs are merging into new hybrid carrier business models. This paper investigates how many types of business models exist in Europe and examines the defining characteristics of the various levels of hybridisation.
- European airlines can be grouped into four business models: FSC, LCC, and two separate hybrid models (Hybrid 1 & Hybrid 2).
- FSC model has partially embraced LCC characteristics related to efficiency.
- LCC model is still consistent with no-frill characteristics.
- Business model migration is not a linear process from LCC aspects towards FSC or vice-versa.
- Hybrid 1 and Hybrid 2 are distinct from one another as they are distinct from LCC and FSC.
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