The End of Low-Cost Fundamentalism - The COVID Interruption

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We review pre-COVID-19 trends, discuss the pandemic's main impact on existing models, and provide the likely new post-COVID-19 trends in the airline sector. However, the fundamentals of the democratization of air travel, particularly in the short-haul segments, are left untouched. After a "short" interruption, it will remain a cost-based game in which high return, agile, low-cost carriers compete with typically less-profitable network airlines that leverage their long-haul network and loyalty platforms.
Bibliographic citation: CRUZ, A., NUENO, J. L. (2021). The End of Low-Cost Fundamentalism - The COVID Interruption. IESE, M-1382-E.
Date: 01/03/2021
Author(s): Alex Cruz; José Luis Nueno
Document type: Case
Department: Marketing
Sector: Air transport; Air transport
Languages: English
Year of the events: 2020