Unveiling the next generation of airlines
Lufthansa Consulting and the Center for Aviation and Space Competence at the University of St.Gallen present a new view on the global airline landscape based on the Airline Business Model Framework.
We enable airlines to better understand their business model and strengthen their market positioning to achieve competitive advantage
Our database offers deep insights into the state of the aviation industry, facilitating a clearer understanding of market positioning and helping to identify new opportunities. By combining quantitative comparability with a modular design, the Airline Business Model Framework enables:
- Strategic positioning in competitive markets
- Identification of business model shifts and convergence
- Support for route, service, and product design decisions
- Longitudinal tracking of business model transformation
Our framework empowers aviation professionals to make data-driven decisions and stay ahead of industry disruption. Based on a sample of more than 110 airlines, it offers a holistic view of how new patterns emerge. Designed for industry leaders, strategists, and researchers, it provides clarity in a highly complex and competitive aviation market.
Our analysis identifies four distinct business models, reflecting both evolutionary shifts and the emergence of an entirely new model within the aviation landscape
Premium Carrier
All-Rounder
Long-Haul Value Carrier
Applies the value model to long-haul flights with segmented classes.
Value Carrier
Enhances the former low-cost model with improved services and loyalty programs.
Premium Carrier
All-Rounder
Long-Haul Value Carrier
Applies the value model to long-haul flights with segmented classes.
Value Carrier
This classification highlights the growing complexity of the airline market and the increasingly blurred lines between business models.
Practical applications for airline strategy
In a fast-evolving airline industry, traditional classifications like Full-Service Carrier (FSC) and Low-Cost Carrier (LCC) no longer capture the full range of business models observed in global markets.
To address this gap, the Airline Business Model Framework (ABMF) was developed through a collaboration between Lufthansa Consulting and the Center for Aviation and Space Competence (CFAC-HSG) at the University of St.Gallen in Switzerland. The ABMF offers a scientifically grounded and practice-oriented tool to capture, analyze, compare, and design modern airline business models.
The structure of the Airline Business Model Framework
The Airline Business Model Framework (ABMF) is built on four strategic key dimensions in aviation: Customer Orientation, Customer Experience, Operating Resources, and Commercial Model.
To operationalize these dimensions, the ABMF includes 17 measurable components that reflect core elements of airline operations – from fleet structure to distribution channels. Each component is rated on a harmonized scale, allowing quantitative comparison across airlines and business model types.
This structure enables airlines and analysts to systematically map, benchmark, and monitor business model development over time.
To operationalize these dimensions, the ABMF includes 17 measurable components that reflect core elements of airline operations – from fleet structure to distribution channels. Each component is rated on a harmonized scale, allowing quantitative comparison across airlines and business model types.
This structure enables airlines and analysts to systematically map, benchmark, and monitor business model development over time.
How can we help with our airline and airport consulting services?
Get in touch with our team of experts to discuss how we can help you fulfill your business aspirations.
We look forward to hearing from you.