Emergence of the Low-Cost Carrier Model in Africa

Eyden Samunderu
Additional contact information
Eyden Samunderu: International School of Management

Chapter Chapter 3 in African Air Transport Management, 2023, pp 77-111 from Springer

Abstract: Abstract The deregulation of air transport markets in Europe and North America and other regions across the globe paved way for the evolution of low-cost carrier (LCC) model. These LCCs were able to offer limited commuter and feeder services on profitable route networks traditionally, air transport markets were dominated by national flag carriers that were heavily subsidized by their national governments, hence sheltering from competition. However, the dynamics shifted after air transport liberalization with the LCCs gaining a foothold in once protected market space. Despite the increase in scope of LCCs across the globe, the African region still is lagging behind the rest of the world in terms of LCCs market penetration. In Africa, the liberalization of air transport market has been very slow and the emergence of the LCC model only started to take effect in early 2000. However, despite a slow response to new competitive dynamics, Africa has been bracing itself with new entrants competing on domestic routes. The penetration of LCCs’ market share on the African content is still in its infancy and remains a very expensive place to operate an airline due to amongst other things—poor infrastructure, logistics and maintenance challenges, as well as inadequate skilled human resources. This chapter presents a comprehensive picture of the status quo of the LCC market in Africa and draws a comparison with other leading markets. There are about 10 African LCCs outside South Africa, which still accounts for less than 3% of capacity within the regional international market in Africa.

Keywords: Low-cost carriers; Low-cost strategy; Deregulation; Full-service network carriers; Capacity (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-031-29324-5_3

Ordering information: This item can be ordered from
http://www.springer.com/9783031293245

DOI: 10.1007/978-3-031-29324-5_3

Access Statistics for this chapter

More chapters in Advances in African Economic, Social and Political Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().