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COfA factor elements (compiled by the authors)

COfA factor elements (compiled by the authors)

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FIG. 1. The Southwest Airlines low-cost, no-frills model (doganis, 2006)
FIG. 2. ryanair's cost reduction techniques (lawton, 2000)
FIG. 4. Strategic direction factor elements (compiled by the authors)
FIG. 5. Pricing factor elements (compiled by the authors)
+1 FIG. 6. COfA factor elements (compiled by the authors)
A FRAMEWORK FOR ASSESSING THE LOW-FARE MODEL IN THE AIRLINE INDUSTRY
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  • Jan 2011
Despite the popularity of the “low-fare” (or sometimes called “no-frills”) airline business model, no comprehensive framework has ever been developed to evaluate the level of implementation of this business model. In the paper, we propose a framework for evaluating the extent to which an airline has implemented a “low-fare” business model. The fram...
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Context 1
... factor (CoFA) represents the key elements of cost structure of an airline (FIG. 6). It evaluates how far an airline has implemented the "low fare" business model. CoFA consists of seven elements: 'outsourcing', 'aircraft types', 'daily aircraft utilization', 'labour-related costs', 'airport related costs', 'distribution', 'in-flight'. The first two subfactors, counting for 2% of the ticket price together, are the ...