Browsing by Author "Gebler, Marc"

In recent years, the sector of air travel has seen a tremendous development towards hybrid business models as a result of the phenomenon of convergence between full-service carriers (FSC) and low-cost carriers (LCC). Until today, the identification and definition of airline business model has been almost limited to this predominant typology and only some others, such as leisure or regional carriers, are described. It becomes necessary to take a broader view in the description of passenger airline business models by exiting the current spectrum limited by the two established extremes: FSC and LCC. The objective of this paper is hence to create a comprehensive framework which broadens the current typology and allows to identify and characterize both evolving and new business models for passenger airlines which are observable in the market today, called the “Airline Business Model Framework” (ABMF). The basis is global airline sample. Departing from the phenomena of convergence and hybridization the limitations of previous research are acknowledged. Based on business model literature, all components which define an airline business model are identified and combined into the ABMF. For each component a quantitative measurement is defined subsequently. A global sample of 78 passenger airlines is then run through the framework and four business model patterns were identified. Of the four identified patterns, three were found to characterize an evolved business model while one was found to represent a new one. The Airline Business Model Framework is presented as a new and comprehensive approach, which can also be practically applied for analyzing, comparing, and designing airline business models. It is thought to fill the gap between the existing, and almost theoretical, business model typology and observable business models in the market for both academics and practitioners.

Air travel is increasingly stigmatized for its proportionally high emission of greenhouse gases. This development has turned sustainability into an issue of strategic importance for airlines, resulting in the launch of several high-profile sustainability initiatives. To quantify the value of these undertakings and gauge the perception of investors, this paper investigates whether unanticipated announcements of sustainability initiatives have an impact on the market value of listed airlines. Building on theoretical deliberations and a semi-systematic literature review, financial multi-country event studies are performed. The results show that announcements of holistic sustainability strategies and initiatives by airlines don't generate an abnormal return. Thus, the hypothesis of a positive market value impact is rejected. The conducted event studies add a new research approach to the existing airline industry specific literature on the value and financial performance impact of corporate sustainability. This approach distinguishes itself from prior investigations by forgoing the use of accounting-based figures to measure corporate performance and avoiding the reliance on externally provided ratings to quantify sustainability engagement.