Over the last years, low cost business models have been developed in many industries and were subject of research of numerous authors. Although having taken place in a wide variety of businesses, the low cost phenomenon has had a special significance in the airline industry. With their slim cost structure and simple offer, certain low cost carriers have succeeded to outperform traditional airlines and to become important players of this industry, mainly in developed markets such as US and Europe. Emerging economies, as main drivers of future economic growth, are attractive territories to be explored by low cost airlines. Nevertheless, factors such as lower average income, infrastructure, competition from incumbents and other transportation methods might put at risk the sustainability of low cost carriers in emerging markets. This book has the objective of answering questions regarding the future of low cost carriers in emerging countries, notably in Brazil and India.
Published: September 2010
AUTHOR: Michel Herszenhaut, MSc: Master of Science in Management. Specialization in Strategic Management at HEC Paris, France. Production Engineer at Universidade Federal Fluminense, Brazil.