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Embry-Riddle Aeronautical University

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Network Carriers’ Strategic Decision With Low Cost Carrier Entry, Tamilla Curtis Jan 2017

Network Carriers’ Strategic Decision With Low Cost Carrier Entry, Tamilla Curtis

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Good decisions require that each decision-maker accurately predicts the strategic moves of the other parties. Dealing with prospective low-cost carrier (LCC) entrants is critical for global network airlines. This research focused on two main issues. First, it investigates competitive reaction by established US airlines when they face an LCC entrant in the less congested, small-sized US regional airports. Second, it examines which of the market indicators are most likely to influence airline fares out of small regional airports with the LCC entry. While the first stage of research demonstrated mixed results and did not discover any patterns in airline behaviour …