The low-cost carrier model in China: the adoption of a strategic innovation

Abstract

The low-cost carrier (LCC) business model represents a strategic innovation that has had a significant impact on the dynamics of the commercial aviation industry in North America, Europe and increasingly Asia. This paper considers the adoption of the LCC model in China and discusses the effect of the particularities of the Chinese political, economic and regulatory context on the rate and character of adoption. We conclude by considering what the experience of the three companies that have adopted the LCC model can tell us about the prospects for the wider adoption of this model in China.