1. Airline Deregulation and Airline Economics

2. Airports you have known?

3. References
Gillen, D. “Airline Business Models and Networks” Review of Network Economics, 2006.

4. Outline History of Regulation and Deregulation in Airlines
The evolution of Hub and Spoke Networks
Computer Reservation Systems, Frequent Flyer Plans
The emergence of the Low Cost Carrier as the “21st century business model”
Predatory pricing in Airlines

10. The LCC Advantage Average Stage Length Flight Cost per Seat Mile
Southwest
472
4.0
United
639
8.1
Delta
546
7.1

11. Sources of Cost Advantage
Labour costs
Sales and Reservations (internet)
Maintenance costs