This analysis examines cost structures in airline classifications, suggesting pricing strategies influence market offerings.
This paper examines how airlines' core system components—infrastructure, equipment, people, and technology—create distinct cost structures that drive market offerings, pricing strategies, and revenue streams across different airline classifications. We analyze how full-service network carriers (FSNCs), low-cost carriers (LCCs), and ultra-low-cost carriers (ULCCs) leverage their cost foundations to develop competitive market positions. The paper ties airline market offerings to consumer psychology.
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Osei et al. (2025) studied this question.
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