The Role of e-Commerce in the Success of Low-cost Carriers

Marco Ginanneschi, Pietro Piu

Abstract


This research aims to answer the question if e-commerce favoured in a special way the growth of low-cost carriers within the civil aviation market. After defining low cost and traditional carriers’ business models, data on transported passengers were collected for three countries (Italy, Germany and Spain) and confronted with the number of e-consumers. Despite a significant correlation in all the three markets, only in Italy our hypothesis has been supported by Granger causality, and the regression analysis allows to forecast a future characterized by a growing dominance of LCCs. Although the definition of an econometric model will require further studies, the distinctive features of the Italian market might represent a starting point for future research on the complex relationship between e-commerce and air transport.



Keywords


e-commerce; e-consumers; low-cost carrier; Ryanair; Granger-causality.

JEL Codes


L10; L93.

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References


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DOI: http://dx.doi.org/10.2478/saeb-2018-0029

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