The Model of Network Carriers' Strategic Decision Making With Low-Cost Carrier Entry

Research output: Working paperPreprint

Abstract

"After deregulation in the United States in 1978, airlines faced intense competition on previously regulated routes. The proponents of deregulation stated that equilibrium in the industry would be achieved by providing lower fares and improved service (Daraban and Fournier, 2008). While this became true to some extent, the airline network in the U.S. was dominated by the hub-and-spoke system and concentrated in the hands of few large airlines. The emergence of the Low-Cost Carrier (LCC) model, which originated in the U.S. through Southwest Airlines in the early 1970s, became an instrument to drive the airlines towards a competitive equilibrium. The LCC model was later adapted by the European market with the Irish carrier Ryanair in 1991, followed by the U.K.-based easyJet in 1995…"--Introduction.

Original languageAmerican English
StatePublished - Jan 1 2015

Keywords

  • airlines
  • airports
  • low cost carriers
  • decision making

Disciplines

  • Business Administration, Management, and Operations
  • Marketing
  • Tourism and Travel

Cite this