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 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.

Bibliographic Details

Main Authors:	Schlumberger, Charles E., Weisskopf, Nora
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-09-10
Subjects:	ACCIDENT RATES, ACCIDENT STATISTICS, ACCIDENTS, AERONAUTICAL CHARGES, AFFORDABLE FARES, AIR, AIR NAVIGATION, AIR SERVICE, AIR SERVICES, AIR TRAFFIC, AIR TRAFFIC CONTROL, AIR TRANSPORT, AIR TRAVEL, AIR TRAVELERS, AIRCRAFT, AIRCRAFT SIZE, AIRCRAFT TYPES, AIRLINE ECONOMICS, AIRLINE INDUSTRY, AIRLINES, AIRPORT, AIRPORT AUTHORITY, AIRPORT BUSINESS, AIRPORT CHARGES, AIRPORT COMPETITION, AIRPORT DEVELOPMENT, AIRPORT INFRASTRUCTURE, AIRPORT OPERATIONS, AIRPORT OPERATORS, AIRPORT TERMINALS, AIRPORTS, AIRWAYS, ALTERNATIVE MODES, ANCILLARY REVENUES, AVIATION INDUSTRY, AVIATION POLICY, AVIATION SECTOR, BAGGAGE, BAGS, BOXES, BROADCAST, BUS, BUS OPERATOR, BUS TRAVEL, BUSINESS MODEL, BUSINESS MODELS, BUSINESS OPPORTUNITY, CALL CENTERS, CAPABILITIES, CAPABILITY, CAPACITY BUILDING, CAPITAL EQUIPMENT, CAPITAL INVESTMENT, CAR, CARGO, CARRIERS, CERTIFICATES, COMMERCE, COMMERCIAL BANKS, COMMODITY, COMMUNICATIONS TECHNOLOGY, COMPETITIVE ADVANTAGE, COMPETITIVE ADVANTAGES, CONGESTION, CONNECTIVITY, COPYRIGHT, CUSTOMER BASE, CUSTOMER DEMAND, DEREGULATION, DIRECT SALES, DISTRIBUTION CHANNELS, DISTRIBUTION NETWORK, DISTRIBUTION SYSTEM, DISTRIBUTION SYSTEMS, DOMESTIC FLIGHTS, DOMESTIC TRAFFIC, DRIVING, E-MAIL, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC ANALYSIS, ECONOMIC ASSESSMENT, ECONOMIC BENEFITS, ECONOMIC DEVELOPMENT, ECONOMIC EFFECTS, ECONOMIC GROWTH, ECONOMIC REGULATION, ECONOMIES OF SCALE, ENERGY EFFICIENCY, ESCALATORS, EXTERNALITIES, FARE LEVELS, FARE REDUCTION, FARE STRUCTURE, FARES, FARES INCREASES, FINANCIAL INCENTIVE, FINANCIAL RESOURCES, FIXED COSTS, FLEET RENEWAL, FLEETS, FLIGHT, FLIGHT TIME, FUEL, FUEL AVAILABILITY, FUEL COST, FUEL COSTS, FUEL EFFICIENCY, FUEL EXPENDITURES, FUEL FUEL, FUEL PRICES, GENERATION, GLOBALIZATION, HANDLING, HEAVY TRAFFIC, HUMAN RESOURCES, ICT, IMAGES, INFORMATION SERVICES, INFRASTRUCTURE CHARGES, INFRASTRUCTURE PLANNING, INNOVATION, INTERNATIONAL AIR TRANSPORT, INTERNATIONAL AIR TRANSPORT ASSOCIATION, INTERNATIONAL AIRPORT, INTERNATIONAL BUSINESS, INTERNATIONAL CIVIL AVIATION ORGANISATION, INTERNATIONAL FINANCE, INTERNATIONAL MARKETS, INVENTORIES, INVESTMENT CLIMATE, INVESTMENT PROGRAM, KNOWLEDGE MANAGEMENT, LABOUR PRODUCTIVITY, LICENSE, LICENSES, MAINTENANCE COSTS, MANAGEMENT SYSTEMS, MARKET CONDITIONS, MARKET DEMAND, MARKET DISTORTIONS, MARKET SHARE, MARKETING, MODE OF TRANSPORT, MODES OF TRANSPORT, NATIONAL TRANSPORT, NAVIGATION SATELLITE SYSTEMS, NAVIGATIONAL AIDS, NEGATIVE EXTERNALITIES, NETWORKS, NEW MARKETS, NOISE, ONLINE DATABASE, PASSENGER REVENUE, PASSENGER SERVICES, PASSENGER TRAFFIC, PASSENGER TRANSPORT, PASSENGER VOLUMES, PASSENGERS, PAYLOAD, PDF, PEAK FARES, PHOTO, POLLUTION, POPULATION GROWTH, POWER, PRICE SENSITIVITY, PRICE-SENSITIVE, PRIVATE PARTNERSHIP, PRIVATE SECTOR, PROCUREMENT, PURCHASING POWER, QUERIES, RESULT, RESULTS, REVENUE PASSENGER, ROAD, ROAD INFRASTRUCTURE, ROAD NETWORK, ROUTE, ROUTES, RUNWAY, RUNWAYS, SAFETY, SATELLITE, SECURITY STANDARDS, SERVICE PROVIDER, SERVICE PROVIDERS, SUPPLY CHAIN, TAX, TELEPHONE, TIME PERIOD, TRAFFIC, TRAFFIC FORECASTS, TRAFFIC GROWTH, TRAFFIC MANAGEMENT, TRAFFIC VOLUME, TRAFFIC VOLUMES, TRANSLATION, TRANSPARENCY, TRANSPORT ACCESS, TRANSPORT ECONOMICS, TRANSPORT GEOGRAPHY, TRANSPORT INDUSTRY, TRANSPORT INFRASTRUCTURE, TRANSPORT MANAGEMENT, TRANSPORT MARKET, TRANSPORT MARKETS, TRANSPORT POLICIES, TRANSPORT POLICY, TRANSPORT SERVICES, TRANSPORTATION, TRANSPORTATION ECONOMICS, TRANSPORTATION RESEARCH, TRANSPORTATION STATISTICS, TURNAROUND TIME, TURNAROUND TIMES, URBAN TRANSPORT, USERS, USES, VSAT, WEALTH, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2014/01/20206587/ready-takeoff-potential-low-cost-carriers-developing-countries https://hdl.handle.net/10986/20191
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