Low Cost

Topics: Airline, Low-cost carrier, Southwest Airlines Pages: 3 (622 words) Published: January 16, 2013
questionnaires were distributed to the respondents,
but 165 questionnaires were properly filled up by the
respondents which were used for further data
analysis. University students living at London and
travel frequently on low cost airlines were also
included on this survey. 78% of the respondents were
European, and 28% were from Asia particularly from
Bangladesh, India, Nepal and Malaysia, and they are
in between 22 to 35 years old. Reasons for selection
of the sample size and the mode of communication in
order to generate responses on the individual
customer profile. As a large number of data has been
collected through interview and questionnaire survey,
data are also analyzed on a deductive manner based
upon the importance and significance of achieving
the research objectives. At the end, some
recommendations and suggestions are given for
further sustainability and growth of LCC.
Movements and Regulations in the Airline Industry
The airlines industry has been subject to a number of
legislations and regulations. Wensveen (2007)
emphasizes on the establishment of IATA in 1965
and deregulation in this process. Deregulation being
the most prominent one, was introduced to provide an
international market for all the airlines, as that would
help in global development, enable the customers to
choose from a wide range of options and also
increased efficiency as non performers will not be fit
enough to survive on the global level (Dunn, 2009;
Iatrou and Oretti, 2007). Deregulation on the
domestic front helped the LCC’s to emerge and
prosper. The low cost revolution pioneered in the
USA by Southwest and in Europe by Ryanair showed
growth consistently. LCC’s struggled to gain grounds
in other parts owing to regulated markets, rising fuel
cost, reducing passenger load factors, slow paced
regional economic growth, lack of ability to create a
distinctive competitive image, bankruptcy, reducing
profit margins (Hardy, 2009). With initial...
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