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Abstract

In the 1970s, the concept of air travel at a reasonable price came into being with the advent of the low cost carriers (LCCs). Their 'no-frills' business model gained instant popularity amongst all segments of customers. Although the LCCs were found to gain global recognition and popularity in a relatively short span of time, they faced their share of challenges too. Moreover, the LCCs faced resurgent traditional airliners that diversified into low cost airlines operations in a bid to regain their market share snatched away by the LCCs. With an aim to cope up with the increasing challenges and to survive competition, the LCCs decided to restructure their business model, improve their service quality and maintain a low cost identity. Critics remained speculative about the future prospects of the LCCs in the commercial aviation industry.
Location:
Industry:
Other setting(s):
2007

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Abstract

In the 1970s, the concept of air travel at a reasonable price came into being with the advent of the low cost carriers (LCCs). Their 'no-frills' business model gained instant popularity amongst all segments of customers. Although the LCCs were found to gain global recognition and popularity in a relatively short span of time, they faced their share of challenges too. Moreover, the LCCs faced resurgent traditional airliners that diversified into low cost airlines operations in a bid to regain their market share snatched away by the LCCs. With an aim to cope up with the increasing challenges and to survive competition, the LCCs decided to restructure their business model, improve their service quality and maintain a low cost identity. Critics remained speculative about the future prospects of the LCCs in the commercial aviation industry.

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Location:
Industry:
Other setting(s):
2007

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