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Tourism and Travel

Embry-Riddle Aeronautical University

Business model characteristics

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Analysis Of Low-Cost Carriers In The Post-Soviet States, Tamilla Curtis, Dawna L. Rhoades Jun 2013

Analysis Of Low-Cost Carriers In The Post-Soviet States, Tamilla Curtis, Dawna L. Rhoades

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The research paper provides an overview of low-cost carrier (LCC) development in the post- Soviet states with the analysis of the largest aviation market in Russia. The LCC model seeks to achieve a competitive advantage through the reduction of operating costs below the traditional airline model. Since the post-Soviet states are emerging economies, airlines face a high level of uncertainty and experience a number of unique problems. While the global community enjoys the benefits offered by LCCs, the question remains why this model has not been successful in the 15 newly formed countries, with the exception of the Hungarian low-cost …