Essays on The Economic Impact and Growth of Low-Cost Carriers within the European Aviation Industry Case Study

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The paper “ The Economic Impact and Growth of Low-Cost Carriers within the European Aviation Industry” is a comprehensive variant of the case study on macro & microeconomics. The airline deregulation act was signed in 1978 in the United States and it was the “ open door” for many airlines to start competing with each other. However, this law did not occur in Europe, the “ liberalization” of air travel happened in different phases. Above all, liberalization had not driven to drastic changes in the European airline industry, like in the US after deregulation was established, but it did bring changes economically speaking to the European Union (E. U).

In the beginning, the E. U granted air carriers to have more freedom to adjust fares and cast new services, later they proceeded gently to raise all services and marketing censorship. The low-cost carriers (LCC) were introduced in the aviation European market by EasyJet and Ryanair which were created in the nineties in Ireland and the United Kingdom. Later on, more low-cost carriers were formed such as Germanwings, Vueling, Transavia, and others. Their vast achievement was attributed to the accessible ticket fares offered by the low-priced airlines to their customers.

Nowadays, LCCs have a powerful presence in each market division across the E. U and also the United Kingdom with a one-third share of the domestic flights in the aviation industry. This research paper will examine how the LCCs have had an economic impact and its strong growth versus major carriers within the European aviation industry. Section One: Examination of LCC Business Layout and its overall GrowthThe low-cost carriers sector was established in the 70s to enhance passenger flows and transport infrastructure in the Aviation industry.

The low-cost carriers (LCC) were introduced in the aviation European market by EasyJet and Ryanair, which were created in the nineties in Ireland and the United Kingdom. Later on, more low-cost carriers were formed such as Germanwings, Vueling, Transavia, and others.

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