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  • A quantitative means of comparing competitive advantage among airlines with heterogeneous business models: Analysis of U.S. airlines

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    Accepted Manuscript (AM)
    Author(s)
    Moir, Loren
    Lohmann, Gui
    Griffith University Author(s)
    Moir, Loren
    Lohmann, Gui M.
    Year published
    2018
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    Abstract
    Increasing heterogeneity amongst airline business models makes objectively comparing their competitive advantage increasingly difficult. In this study, we develop an instrument that objectively quantifies the competitive advantage of airlines within a single market, the US. The data sample includes nine US airlines with product and financial data gathered from 2011 to 2013. The consolidated data enable the calculation of a product index and a cost index. The product index incorporates four sub-indices (revenue, connectivity, convenience and comfort), while the cost index incorporates three sub-indices (unit cost, aircraft ...
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    Increasing heterogeneity amongst airline business models makes objectively comparing their competitive advantage increasingly difficult. In this study, we develop an instrument that objectively quantifies the competitive advantage of airlines within a single market, the US. The data sample includes nine US airlines with product and financial data gathered from 2011 to 2013. The consolidated data enable the calculation of a product index and a cost index. The product index incorporates four sub-indices (revenue, connectivity, convenience and comfort), while the cost index incorporates three sub-indices (unit cost, aircraft and labour). The developed model enables the identification of the hybrid business models that are successfully pursuing an integrated cost leadership and differentiation strategy. The results also confirm that competitive heterogeneity exists whilst demonstrating that competitive advantage can be mutually exclusive to the respective airline's strategic proposition.
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    Journal Title
    Journal of Air Transport Management
    Volume
    69
    DOI
    https://doi.org/10.1016/j.jairtraman.2018.01.003
    Copyright Statement
    © 2018 Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence (http://creativecommons.org/licenses/by-nc-nd/4.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, providing that the work is properly cited.
    Subject
    Urban and regional planning
    Publication URI
    http://hdl.handle.net/10072/380351
    Collection
    • Journal articles

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