The Development of the Low-Cost Carriers’ Business Models. Southwest Airlines Case Study

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Abstract

The aim of this paper is to analyze the development of the low-cost airline model, underlying the factors that have encouraged and/or inhibited the spatial and temporal spread of these operators. The study shows that there are significant differences in the business practices of the ‘low cost carriers’, depending on the particularities of the strategies that they have adopted, on how, when and where they were implemented, reason for which we refer to ‘business models’. In the end of the paper, we have conducted a detailed research, based on a questionnaire, on the company that has implemented for the first time the low-cost carrier model: Southwest Airlines.

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