WHAT IS A LOW COST AIRLINE? DEFINING CARRIER BUSINESS MODELS

摘要

Increased demand for low cost air travel and competition between airlines and other modes of transport, has led airlines to reassess the management and strategic business techniques they employ. This paper offers benchmark characteristics of European airlines, to identify the extent to which they follow a low cost / no-frills business model. Cost and operational data has been obtained from the CAA and ICAO and detailed matrices have been compiled using airline websites to identify the extent to which different airlines demonstrate characteristics typical of Low Cost Carriers (LCCs). The study provides evidence that the ‘traditional' LCC no longer exists in practice, but is representative of a personalised service designed to meet the needs of an increasingly discerning passenger. This research is a pre-cursor to examining the behaviour of passengers and cultural changes in society as a result of the increased travel options available in the airline market.