The Entry of Low-Cost Airlines into the Market for Long-Haul Flights

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Characteristics of LCCs
  • Route network and additional services
  • Distribution channels & pricing
  • Operational aspects
  • Strategic positioning
• Characteristics of the long-haul market
  • General structure and incumbent players
  • Requirements
    • 'Feeding' and 'de-feeding'
    • International code-share alliances
  • Entry Barriers
    • Theoretical background
    • Entry barriers to the long-haul market
• Entering the long-haul market
  • The transferability of the low-cost model from short-haul to long-haul
    • Transferable characteristics of the business model
    • Required adjustments
    • Conclusion: The low-cost long-haul business model
  • Judo economics as an auspicious framework for entry
    • Overall Framework
    • Capacity limitations: Theoretical background and transferability to this topic
    • Quantitative model for the 'movement step' of the Judo strategy
  • Practical implications for the entry
    • Overcoming barriers of entry
    • The Judo entry
• Empirical evidence: Norwegian Airlines
• Conclusion
• List of references

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis analyzes the potential entry of low-cost carriers (LCCs) into the long-haul market, focusing on the development of a successful entry strategy. The research investigates the transferability of the LCC business model from short-haul to long-haul operations, taking into account the specific challenges and opportunities of the long-haul market. The goal is to identify a suitable entry mode based on theoretical economic frameworks and to assess its practical implications. The thesis also analyzes the actual long-haul entry of Norwegian Airlines, the first European LCC to enter the long-haul market, and compares their strategy to the proposed entry mode.

• Transferability of the LCC business model from short-haul to long-haul
• Developing a successful entry strategy for LCCs in the long-haul market
• Analysis of the long-haul market characteristics and entry barriers
• Application of economic theory and game theoretical considerations to the entry strategy
• Empirical analysis of Norwegian Airlines' long-haul entry strategy

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter introduces the topic of LCCs entering the long-haul market and highlights the key differences between the short-haul and long-haul markets. It also outlines the thesis's focus on developing a suitable entry mode based on theoretical economic frameworks and analyzing Norwegian Airlines' entry strategy.
• Characteristics of LCCs: This chapter explores the operational characteristics of LCCs, including their route network, distribution channels, pricing strategies, and operational aspects. The chapter analyzes the key cost advantages LCCs enjoy and their strategic positioning compared to full service carriers (FSCs).
• Characteristics of the long-haul market: This chapter examines the specific characteristics of the long-haul market, focusing on its structure, key players, and entry barriers. It discusses the challenges and opportunities for LCCs entering the long-haul market, emphasizing the need for a different business model compared to short-haul operations.
• Entering the long-haul market: This chapter delves into the feasibility of transferring the LCC business model to long-haul operations, analyzing the required adjustments and outlining a potential entry mode based on economic theory. It explores Judo economics as a suitable framework for LCC entry and discusses its theoretical and practical implications.
• Empirical evidence: Norwegian Airlines: This chapter presents an analysis of the long-haul entry strategy of Norwegian Airlines, the first European LCC to enter the long-haul market. It evaluates their approach and compares it to the theoretical framework developed in previous chapters.

Schlüsselwörter (Keywords)

This thesis examines the entry of low-cost carriers (LCCs) into the long-haul market, focusing on the transferability of the LCC business model, the development of a suitable entry strategy, and the analysis of Norwegian Airlines' actual entry. Key terms and concepts include: cost advantages, route network, distribution channels, pricing strategies, operational aspects, strategic positioning, entry barriers, Judo economics, competitive interactions, and empirical evidence. The thesis utilizes economic theory and game theoretical considerations to analyze the potential for LCCs to successfully enter the long-haul market.