Bauer LB, Bloch D, Merkert R. Ultra Long-Haul: An emerging business model accelerated by COVID-19.
JOURNAL OF AIR TRANSPORT MANAGEMENT 2020;
89:101901. [PMID:
32839647 PMCID:
PMC7438344 DOI:
10.1016/j.jairtraman.2020.101901]
[Citation(s) in RCA: 3] [Impact Index Per Article: 0.8] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 05/29/2020] [Revised: 07/15/2020] [Accepted: 08/02/2020] [Indexed: 05/04/2023]
Abstract
The COVID-19 outbreak has sent shockwaves throughout the aviation industry, sending a myriad of liquidity-strapped airlines into administration or part government ownership. In turn, this paper argues that the novel phenomenon of Ultra Long Haul (ULH) operations already maintains the necessary characteristics to generate a competitive advantage that will not only succeed, but outperform other business models, in a post COVID-19 era. Our modelling and scenario analysis results suggest that point-to-point ULH services, with access to a strong domestic feeder system, will not only require minimal adjustments to cope with COVID-19, but will simultaneously produce higher seat-load factors and yields, heightened network flexibility, and unique health benefits tied to its ability to bypass densely populated hub airports.
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