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There is no doubt that this low-cost model has been a resounding success. However, some airlines have experienced considerably more success than others.
Low-cost model
The first LCC to rival the major carriers was Southwest. Introduced in 1971 in the USA, this LCC implemented the original low-cost model comprising:
low fares;
high frequency flights;
point to point service;
no free meals or drinks on board;
no seat assignment;
short flights; and
flights to secondary airports.
This approach is in line with Michael Porter's theory that there are three major strategies companies can adopt to gain competitive advantage:
Cost leadership – where an organization seeks to be the lowest cost producer by selling standard, mass products...
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