The Effect of Airline Business Models on Nowadays Civil Aviation Industry

The civil aviation industry which began to develop in the deregulation period in 1978 became the dominant mode of air transport in the early 1990s, with the use of hub (centre airport of a flag carrier airline) and spoke (connection destinations from flag carrier airlines’ centre airport) concepts. With this development low cost transportation strategy has been effective and airlines that implement the traditional transportation strategy have also accelerated this development. In the 9/11 Twin Tower Attack, confidence for the civil aviation industry has declined and there has been a 7% depreciation across the globe. In the same period, numerous small and large scale airlines had to finish their activities. At the beginning of the 1990s low cost carrier airlines which played a major role in the growth of the civil aviation industry, even more dropped ticket prices, allowing people from all walks of life to embark on the aircraft, taking the industry out of luxury transportation and ending the loss of confidence process. This research examines airline business models that provide industry growth in the 21st century, apart from the main trend of low cost transportation in the 1990s