Ready for Takeoff? The Potential for Low-Cost Carriers in Developing Countries
The emergence of low-cost carriers (LCCs) has been a key catalyst for the development of the aviation industry in the last decade. Indeed, extensive research has been undertaken to analyze the business model and impact on the aviation sector and be...
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| Format: | Publication |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/01/20206587/ready-takeoff-potential-low-cost-carriers-developing-countries http://hdl.handle.net/10986/20191 |
| Summary: | The emergence of low-cost carriers
(LCCs) has been a key catalyst for the development of the
aviation industry in the last decade. Indeed, extensive
research has been undertaken to analyze the business model
and impact on the aviation sector and beyond. Despite recent
developments in the LCC markets in Asia and Latin America,
much of the research has been focused on developed
countries. Therefore, the purpose of this book is to
identify the premises and prerequisites of the LCC model,
and assess whether this business model could be successful
in other less-developed countries, in particular the
countries of Sub-Saharan Africa. This book identifies
various definitions that have been applied to describe the
LCC business model. In essence the majority of researchers
define LCCs as carriers which, through a variety of
operational processes, have achieved a cost advantage over
full-service carriers (FSCs). This cost advantage is, in
most cases, translated to the consumers by a lower fare
offering. Although many carriers are defined as LCCs, the
LCC model has developed into many different variations since
the original Southwest Airlines model, the first U.S. LCC,
which began operations in the 1960s. |
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