Introducing connecting flights in LCCs' business model: Ryanair's network strategy

• Published in: Journal of air transport management 2020-08, Vol.87, p.101849, Article 101849
• Main Authors: Morlotti, Chiara, Birolini, Sebastian, Cattaneo, Mattia, Redondi, Renato
• Format: Article
• Language: English
• Subjects: Airline business models; Connecting flights; Flight frequency; Low-cost carriers
• ISSN: 0969-6997; 1873-2089
• DOI: 10.1016/j.jairtraman.2020.101849

In light of the ‘hybridization’ process characterizing airlines' business models, this work contributes to the literature by analyzing the rationale underpinning the decision to introduce connecting flights into the typical point-to-point networks of low-cost carriers (LCCs). By referring to the network of the largest European LCC, Ryanair, we provide evidence on how its new inter-connecting strategy is influenced by market, supply, and leg characteristics. Applying a probit model, results suggest that Ryanair is offering connecting flights on both non-directly offered markets and on markets that it already serves directly. The likelihood to observe a connecting flight increases at higher level of legs' frequency and at lower levels of Ryanair's legs' market share. Eventually, this new connecting strategy is negatively correlated with market distance, routing factor, direct frequency, and Ryanair's current O&D market share. •Ryanair offers connecting flights also in markets it already serves directly.•The probability to introduce a connecting flight is negatively affected by frequency on direct flights.•A connecting flight is more likely to be offered when legs' frequency is higher.•A connecting flight is more likely to be offered when market share on the two legs is low.