Low-Cost Carrier (LCC) Model

The effects of airline industry liberalization on transportation have been investigated in the literature since the 1980s. One of the developments that significantly affected the competitive environment in the traditional airline market with the deregulation of the European market is the rise of “low-cost carriers (LCCs).” In the highly competitive aviation industry, meeting the expectations of the customer and providing excellent service is of utmost importance. LCCs, which try to keep their profit margins high with cost-saving strategies, are known to provide satisfactory responses to market needs with their rapid adaptation to aviation demands. In this context, the definition, development, strategic components, strengths, and weaknesses of the LCC model and its applications in the field are presented in this section.