Title: Innovative business models for full cycle operating airlines

Authors: Iryna Heiets; Sergiy Spivakovskyy; Tetiana Spivakovska

Addresses: School of Engineering, RMIT University, 124 La Trobe St., Melbourne, VIC, 3000, Australia ' Business Department, Higher Colleges of Technology, P.O. Box 7947, Sharjah University City, Sharjah, United Arab Emirates ' Industrial Marketing Department, National Technical University of Ukraine "Igor Sikorsky Kyiv Polytechnic Institute", 37, Prosp. Peremohy, Kyiv, 03056, Ukraine

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.

Keywords: full cycle operating airlines; aviation industry; innovative business model; business model canvas; Emirates Airlines; Etihad Airways.

DOI: 10.1504/IJBPM.2019.105246

International Journal of Business Performance Management, 2019 Vol.20 No.4, pp.356 - 377

Received: 10 Jun 2019
Accepted: 17 Sep 2019
Published online: 22 Feb 2020 *

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