Customer Value of direct transatlantic flight connections: A logistic choice model in the case of Switzerland

The future of business models for traditional long haul air operators as well as airports depends among other things on the customer value attributed to direct intercontinental flights by customers. This paper contributes to the discussion of future airline business models by evaluating the customer value of direct transatlantic flights considering as example Switzerland and the hub Zurich. Because of the positioning of its main airport as well as its homecarrier Swiss combined with its economic situation and the large number of international headquarters, Switzerland serves as a core example for a market on the brink. The study draws on data from a survey of 514 travellers out of Switzerland. By applying logistic choice modelling, hidden preferences and by this approximately real customer value could be identified. The direct transatlantic flights contribute to customer value generally by punctuality, total travel time, direct connections, travel convenience, security and travel costs, although customer value is slightly different for business travellers and leisure travellers. Conclusions regarding airline business models' effects on hubs but also about the utility of methods are drawn.