The market potential of all-premium class services on medium haul leisure routes from Germany

The market potential of all-premium class services on medium haul leisure routes from Germany

Journal: Air Transport Management

Author: Sven Maertens

Published: 2011

Abstract

In this paper, we analyse the potential demand for premium products on medium haul leisure routes, which is currently not met by appropriate supply. More precisely, we discuss if all-premium class services targeting the wealthy tourist could be viable on such routes. In a case study approach, we estimate potential costs, average ticket prices and demand for hypothetical all-premium class operations between Germany and Spanish islands Majorca, Gran Canaria and Tenerife.

Keywords: Leisure airlines, Premium airlines, Airline operating costs, Airline business models

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