Airlines define their business models: a content analysis

Abstract

Business model is not a new concept; however, it has been recently studied in business management literature. On the other hand, business model concept has not been studied in terms of its components in airline business. The purpose of this study is to see how airlines define their business models based on business model components. In this study business model concept is introduced and business model components are discussed as they have been explained in literature. Research part aims to explore how airlines describe their business models. To clarify this, a content analysis has been done in the strategic statements and in 'about us' parts of the websites of 50 biggest airlines worldwide. Our study shows that there are four components that airlines mention in their strategic statements and in 'about us' parts of their websites. These components are: 1) the value proposition; 2) the market segmentation; 3) the value chain; 4) the profit structure.