Low-Cost Competition in the United States

Abstract

This paper contrasts low-cost carriers (LCCs) in the United States with Southwest Airlines in terms of structure, product, and relationships. JetBlue emulates the Southwest model most directly and performs well. AirTran also performs well but by using an approach that is more consistent with the legacy carriers. Remaining LCCs have struggled to be consistently successful, suggesting that the environment for airlines is exacting and requires a tight strategy for success in order to keep costs consistently below low fares.