Research Of European Low-Cost Strategy
Laamanen, Aleksi (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025052415666
https://urn.fi/URN:NBN:fi:amk-2025052415666
Tiivistelmä
From the 1990s to the 2020s, the global airline industry underwent a significant strategic shift, driven by U.S. deregulation and the rise of low-cost carriers (LCCs). This thesis focuses on the strategic models of European LCCs, exploring how they balance low operational costs with adequate service and quality.
Using a mixed-methods approach, the study combines analysis of airline annual reports and official sources with a customer survey. The findings indicate that LCCs primarily adopt a cost leadership strategy, distinguishing themselves from full-service carriers (FSCs), which use more diversified models.
Key cost-efficiency drivers identified include secondary airport usage, lean operations, ancillary revenue streams, and tax planning. The research concludes that sustainable profitability for LCCs depends on clear cost-based strategies, operational efficiency, and adaptability to economic fluctuations.
Using a mixed-methods approach, the study combines analysis of airline annual reports and official sources with a customer survey. The findings indicate that LCCs primarily adopt a cost leadership strategy, distinguishing themselves from full-service carriers (FSCs), which use more diversified models.
Key cost-efficiency drivers identified include secondary airport usage, lean operations, ancillary revenue streams, and tax planning. The research concludes that sustainable profitability for LCCs depends on clear cost-based strategies, operational efficiency, and adaptability to economic fluctuations.