In order for a low cost Airline Industry to be established, it is essential to acquire an understanding of the fundamental concept behind a low cost Airline Industry (Doganis 2001). A low cost Airline Industry is one that allows its consumers to take advantage of air travel at low rates. In order to provide passengers with low charges for air travel, it becomes essential to eliminate high-end augmented services from the services being offered to the passengers. By doing so, operating costs get dramatically reduced.
It is essential to note that the concept of the Low Cost Airline Industry is one that was initially coined by the United States of America and it would therefore be advisable to take lessons from the same in order to avoid the repetition of mistakes made in the initial stages of the development of the Low Cost Airline Industry (Steves 2007).
In order for a Low Cost Airline Industry to be established, it is essential to give special attention to the factors of passenger class, aircraft type and fare schemes, seating models, flying routes, sales structures, issuance methods and employee management amongst others (Gross & Schröder 2007).
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