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Why Long-Haul Low-Cost Airlines Always Go Bankrupt

Journal: International Journal of Science and Research (IJSR) (Vol.10, No. 1)

Publication Date:

Authors : ;

Page : 1215-1219

Keywords : Aviation Industry Airlines Long-haul Low-cost COVID-19 Segmentation Targeting Business Strategy Operations Bankrupt;

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Since the emergence of the low-cost airline sector, competition and demand have contributed much to this sector. A key question is whether it is enough to say that in terms of profitability, some airlines work better than others in the long-haul low-cost business model and whether this can be the reason for some going bankrupt. This paper uses 10 currently operating long-haul, low-cost airlines to compare their 14 measurable characteristics that might impact their profitability. It also evaluates the farthest these characteristics apply to long-haul sectors. Other factors like route networks adoption, limited potential for demand stimulation, likely competitive response, and the demand for the dense market all combine to cause doubt on long-haul low-cost airlines' success. The key findings include what drives this industry, the industry's state before and after the Covid-19 pandemic, and what might be the reasons for long-haul low-cost carrier bankruptcy.

Last modified: 2021-06-26 17:59:53