The Airline Industry: A disruptive Innovation

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The Airline Industry; A disruptive Innovation

There was a time when people had to travel days to reach from one place to another. Some of them died in the midway while some could not reach their destinations due to lack of proper navigation. The invention of the airplane was a disruptive innovation as it changed the persona of traveling. People could meet their loved ones especially during their illness or in an emergency. They got the chance to see an aerial view of the world which they once thought was impossible. Even though this business is the second most risky after hospitality, yet it has the potential for huge profitability (Jürgen Ringbeck, December 2017). But as the sky is the limit and every industry need to modernize for better to survive, the airline industry also had to change their business model. 

The Evolution; Emergence of Long-haul flights

The new business of the airline industry must cater to passengers’ preferences, lifestyles, and behaviours. This resulted in the invention of long- haul model. The flights that aim to attract the long-haul market started emerging in the 2000s in the Asia-pacific region. This includes AirAsia X in 2003 and Jetstar in 2007. Then it was expanded to North Atlantic Market in 2015 such as West Jet Long-Haul, Euro wings long-haul, Wow air, and Norwegian long-haul (Jürgen Ring beck, December 2017). Since its emergence. This model has emerged to be a threat to the previous one and also to the airport hubs. This research essay discusses in the latter parts, the key interventions and impact of this new business model, the challenges it has to face, its survival, and the strategies to apply during crises most recently being COVID-19.

Key Interventions of Long-Haul flights on Aviation

The new model that emerged in the airline industry was not only the long-haul model but the long-haul low-cost model. This turned out to be an increasing attraction for the consumers. This model has a direct impact on crew requirements, security requirements, airport facilities, turnaround times, route authorities, extended-range twin-engine operational performance standards (ETOPS), training differences, distribution challenges, and route density of the current aviation business model (John G. Wensveen, May 2009).

Many successful airlines such as AirAsia X, Jetstar have gained the market. These flights have changed the dynamics of the existing market in terms of competition and have cause an increase in air transport over the past two to three decades. They have converted the rigid structure into lean globally.

As these flights are increasing their ability to operate globally, the traditional short-haul flights are also looking for expansion and increasing their network. Many of the established airlines have now started long haul flights. This evolving long-haul flights model is intervening in the revenue streams of the existing charters and could be a serious threat. (Sascha Albers, October 2020).

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