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Volumn 32, Issue 6, 1999, Pages 573-586

The limits of price leadership: Needs-based positioning strategy and the long-term competitiveness of Europe's low fare airlines

(1)  Lawton, Thomas C a  

a NONE

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EID: 0038807318     PISSN: 00246301     EISSN: None     Source Type: Journal    
DOI: 10.1016/s0024-6301(99)00074-6     Document Type: Article
Times cited : (18)

References (27)
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  • 2
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    • Note
    • Various reasons are given to explain why so many airline start-ups have gone bankrupt whilst still in their infancy. In general terms, many new airlines are strategically ill conceived and inadequately financed. More specifically, legal barriers and high costs pose the main challenges in Europe. A number of airlines launched in the wake of European air transport deregulation failed subsequently to attain regulatory approval from relevant authorities such as the UK Civil Aviation Authority. In addition, European start-ups incur on average 40% higher costs than their US counterparts. These stem from factors such as higher airport charges, greater fuel prices and more inflexible labour conditions. For instance, the handling costs at Paris Charles de Gaulle airport are roughly three times more expensive than at Washington Dulles airport. Rising lease rental costs on aircraft have also adversely affected start-ups globally. The obvious lessons are that although enormous market potential exists across Europe for low fare airline competitors, only a few will manage to sustain a presence and their route expansion will be slower than initially anticipated.
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    • Ryanair's low break even load factor is attributable to its high passenger-per-mile yield, which is calculated by dividing the cost per passenger per mile by the revenue per passenger per mile.
    • Ryanair's low break even load factor is attributable to its high passenger-per-mile yield, which is calculated by dividing the cost per passenger per mile by the revenue per passenger per mile.
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    • Building your company's vision
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    • The resource-based theory of competitive advantage: Implications for strategy formulation
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    • Value innovation: The strategic logic of high growth
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* 이 정보는 Elsevier사의 SCOPUS DB에서 KISTI가 분석하여 추출한 것입니다.