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In this context, we are going to choose a Spanish low cost company, and analyse the main problems it has to face, and what we think it should be done in order to overcome these. The chosen company is Vueling, created 3 years ago, with 57 routes, with more than 8 million passengers, and which during the last months has seen how the value of its shares reached their minimum price, at the same time that it quantified massive losses.
Nevertheless, most low cost companies share this situation. During the past years low cost companies have increased a lot their offer and, in order to fill the planes got involved in a price wars (all this in a context with continuous increases in the price of oil)...
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