Challenges in the Business Model of Low-Cost Airlines

Abstract

In recent decades, low-cost airlines have proliferated in the European market offering cheap tickets and increasing popularity. This business model, characterised by cost leadership, has been studied on numerous occasions. The case of the Irish airline Ryanair has presented different challenges over the last few years in relation to its stakeholders, who are shaping the sustainability of the current era of air travel. This business model should be adapted to the current demands of the market, such as corporate social responsibility or care for the environment. The functioning of low-cost airlines regarding the use they make of ERP management systems is also analysed. They aim to balance their cost strategy with the development of internal resources and capabilities for the company's long-term strategy. A major current challenge for low-cost airlines is the implementation of ERP management systems to make strategies oriented to the customer, sustainability, and corporate social responsibility.

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