The Airline Business Model

As I continue my role as Enterprise Architect at Aer Lingus, I am looking to leverage a business model that will help to direct (and benchmark) the Business Architecture we urgently need to develop to really help us to become a modernised airline with an innovative, flexible and scalable IT capability that gives true agility to the Business.

While researching this area, I found an interesting article that touches on the subject of an “Airline Business Model” – here’s the abstract:

“Heading towards virtualization or integration” implies a strategic choice between two, metaphorical directions: on the one hand the direction of virtualisation, where the airline separates non-essential activities from the core activity. On the other hand the direction of integration where the airline groups those non-essential activities with the core activity. Rigas Doganis, author of the book “The airline industry in the 21st century”, refers to a virtual airline model and an aviation business model respectively. The aim of this thesis, based on those two models, is to find out if there are any competitive differences as a result of contrasting approaches by airlines towards the defining of this core activity. In attempting to realise this aim I had to ask myself two key questions: What is this core activity? And do different approaches in defining this core activity affect the competitive climate in the airline industry?

Interested in reading more? Click here to read the article.

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