Airlines: Does “Low Cost Model” Guarantee Profitability?

The success enjoyed by pioneer and leading Low Cost airlines such as Southwest and Ryanair may have inadvertently given the concept the outlook of a “silver bullet” with regards to the Airline Industry’s perennial profit challenge. However, as deeper analysis and observation over time now indicates, it takes more than just “low costs” to be profitable in the Airline industry.

As Martin Roebuck observes in his article written for the Airline Fleet Management (AFM) website and  titled  “Leading LCCs: Is low-cost enough?”, the original low cost model championed by pioneers like Ryanair remains in existence to date but many of latter day low cost carriers have now gone beyond its remit.

Follow this link to read Martin’s article – Leading LCCs: Is low-cost enough? – Airline Fleet Management.


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