An economic model of passenger air transportation according to the following business formula: “low costs – low fares – high demand – high incomes”. Key elements of LCC business model in today’s conditions there is one class of service, simple tariff structure with limited differential services and there is no practice of return money for an unused ticket and rebooking services.
Published in Chapter:
European Low-Cost Airlines in Ukraine: Features of Entry and Consolidation in the National Market
Mykhailo Rutynskyi (Ivan Franko National University of Lviv, Ukraine) and Halyna Kushniruk (Ivan Franko National University of Lviv, Ukraine)
Copyright: © 2022
|Pages: 36
DOI: 10.4018/978-1-7998-8840-6.ch006
Abstract
This chapter is devoted to the issue of entry and activity of European low-cost airlines in the Ukrainian market. Ukraine, with the largest territory and population in Eastern Europe, is an important partner of European countries. The rapid development of air transportation between Ukraine and European countries in the 21st century is based on two factors: 1) high tourist interest in the historical and cultural heritage of Europe and 2) communication of migrant workers, the number of which is steadily growing. The authors reveal the specifics of the entry and development by European airlines of market niches of low-cost transportation in Ukraine in 2008-2021. In particular, the activities of airlines are considered: Ryanair, Wizz Air, German Wings, Meridiana, Ernest Airlines, Vueling Airlines, AegeanAir, Air Baltic, Austrian Airlines, and others. The activity of European low-cost carriers in the number of flights and directions of passenger transportation in Ukraine is evaluated.