Abstract
D.Com.
When low cost carriers are introduced into domestic or regional scheduled air transport markets, the effects tend to be profound. In most markets where they have been introduced, lower prices have tended to lead to the stimulation of demand. As the scope of the market increases, so too does the number of entrants in the market, resulting not only in higher levels of competition but also lower prices and services. The success of the low cost model is indicated by the uptake in the air transport markets, where low cost carriers sometimes account for as much as 50% of the total air traffic movements. The presence of the low cost carriers is not necessarily a guarantee of success and the market failure rates tend to be high...