Innovative business models for full cycle operating airlines

Abstract

This study provides insights into the innovative business model for airlines. We theoretically discussed the main aspects and features of the functioning of innovative business model for a full cycle operating airlines. Focusing on the aviation industry, we enhanced the understanding of network structure, elements, factors and transformation process of business model innovation. An in-depth study of the full services network carriers was conducted for two competitors in the Middle East region - Emirates Airlines and Etihad Airways. The business model canvas was built for the both airlines based on such elements as: key partners, value propositions, key activities, customer relationships and segments, key resource, channels, cost structure, and revenue streams. In addition, the correlation analysis was conducted to identify country innovation factors that significantly impact on revenue of the Middle East airlines, in particular, the UAE-based full cycle operating airlines.