The emergence and effects of the ultra-low cost carrier (ULCC) business model in the U.S. airline industry

Alexander R. Bachwich and Michael D. Wittman

Journal of Air Transport Management, 2017, vol. 62, issue C, 155-164

Abstract: The effects of “low cost carriers†(LCCs) such as Southwest Airlines and JetBlue Airways on the competitive landscape of the U.S. airline industry have been thoroughly documented in the academic literature and the popular press. However, the more recent emergence of another distinct airline business model—the “ultra low cost carrier†(ULCC)—has received considerably less attention. By focusing on cost efficiencies and unbundled service offerings, the ULCCs have been able to undercut the fares of both traditional network and low-cost carriers in the markets they serve.

Keywords: Ultra-low-cost carriers; Low-cost carriers; Airline business models; Market entry; Market presence; Airline costs (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:62:y:2017:i:c:p:155-164

DOI: 10.1016/j.jairtraman.2017.03.012

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