Evolution of airline business models : the case of Pegasus Airlines

Pegasus Airlines has been an unique airline, as it changed its business model from a charter airline business model to a low-cost airline business model and is currently positioned itself with low-cost network carrier business model. The aim of this study is to examine the change of business model of Pegasus Airlines, which has been operating in airline industry in Turkey since 1990. For this purpose, a single case study approach was designed to allow in-depth analysis of the airline business model. Semi-structured interviews were conducted in 2019, supported by data gathered from multiple sources. The results confirm that the change of regulations and perspectives, geographical advantages of the airports and the state support could serve as catalysts to the ability to change the airline business model. This study makes a contribution to airline business model literature by revealing the factors influencing the evolution of a business model of Pegasus Airlines.