29Nov '12

The Impact of Blue Ocean Strategy in Low-Cost Transport

Int'l Conference on Traffic and Transportation Engineering

Theme: Applicability of blue ocean strategy theory to air transport illustrated using the case of Ryanair.

Summary: Based on secondary analysis of the low-cost transport market in the European Union, this paper shows how blue ocean strategy can have a significant impact in the low-cost aviation industry. The authors report that the environment is highly competitive and that airline companies as well as regional airports continue to fight for market share and profits. Using the case of Ryanair, the authors illustrate that a cooperative relationship between regional airports and an airline company can enable budget carriers to provide differentiated value for passengers at a low cost to the companies. The authors also suggest that infrastructure development for non-aviation activities at the smaller regional airports might be necessary to enable such relationships.

Reference: Štverková, Hana, M. Červinka, and V. Humlová. "The Impact of Blue Ocean Strategy in Low-cost Transport." In 2012 International Conference on Traffic and Transportation Engineering. Belgrade, November 29-30, 2012.
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