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The End of Low-Cost Fundamentalism: The COVID Interruption - Teaching Note
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Reference: MT-54-E
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Year: 2020
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Number of pages: 23
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Publication Date: May 25, 2021
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Source: IESE (España)
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Type of Document: Teaching Note
Description
We review pre-COVID-19 trends, discuss the pandemic's main impact on existing models, and provide the likely new post-COVID-19 trends in the airline sector. However, the fundamentals of the democratization of air travel, particularly in the short-haul segments, are left untouched. After a "short" interruption, it will remain a cost-based game in which high return, agile, low-cost carriers compete with typically less-profitable network airlines that leverage their long-haul network and loyalty platforms.