Management and Operations Commons^™

Comparison Of Shareholder Value Between Full-Service Airlines (Fsas) And Low-Cost Carriers (Lccs)., William Kee

Honors Theses

Shareholders in the airline industry invest in a service industry that is met with high fixed costs, capital, and external factors such as customer satisfaction and fluctuations in crude oil prices. On one end of the airline spectrum in the United States lie the full-service airlines, such as Delta Air Lines, American Airlines, or United Airlines adopting a product differentiation approach to capture a competitive advantage by providing greater benefits, comfort, and experience to the customer. This approach attracts customers that value the experience more so than simply the price of the fare, but is often met with high operating …