Airline capacity strategies: worldwide analysis, taxonomies and regional comparison

Abstract

Airline capacity strategy is a crucial element of any airline operations management. However, there is no clear classification of airline capacity strategies, their taxonomies and how they differ across regions worldwide. Four stages methodology have been used: literature review content analysis, sample design, data collection/preparation and data analysis. Data for more than 350 airlines from six regions worldwide were collected, prepared and analysed. The K-means clustering test was used for this purpose. Five main airline capacity strategies were identified and taxonomised: low capacity-moderate destination; very-low capacity; moderate capacity-people focus; low capacity-onboard focus; and very-high capacity-selective countries strategies. In addition, main capacity strategy patterns within each region were identified too. Moreover, a cross regional comparison identifies the key features, similarities and differences between regions. Finally, some suggestions for airlines were given.