Etivity 4 – Low Cost Airline and its sustainability

Case topic: Low cost airline and its sustainability

Literature review:

Donzelli, M. (2010). The effect of low-cost air transportation on the local economy: Evidence from Southern Italy. Journal of Air Transport Management,16(3), 121-126.

The paper reviews the advantages low-cost carriers had brought to destinations in Southern Italy, focusing on growth of local economics. The study shows that the LCC make it easier for international travellers to access destinations in Southern Italy and therefore help to attract more visitors, resulting in creating more job opportunity and the increase of income. It demonstrates the beneficial side of LCC and helps us to find out the general and direct contribution of LCC.

Chung, J. Y., & Whang, T. (2011). The impact of low cost carriers on Korean Island tourism. Journal of Transport Geography19(6), 1335-1340.

The article examines the influences of low cost carriers on Jeju Island, a popular destination in South Korean and analyzed the positive and negative effects of LCC. It illustrated that even though the operation of LCC creates economic benefits of the island, it does not help to eliminate the traffic fluctuation of peak season. Taking the case as example, we could take a deeper look into the destinations of LCC, inspecting the impacts and contributions of it, from the view point in Asia countries.

Olipra, L. (2012). The impact of low-cost carriers on tourism development in less famous destinations. Cittaslow 2012.

The paper presents that for cutting down the budget, the strategy of LCC is to fly to secondary and regional airport instead of the main international airport and that had generated new tourist demand for those less popular cities. The study once again confirmed the positive influence of low cost carriers in different and new destinations, and it also took the environmental issues into account. With the reference, we learn how the secondary destinations become more famous and what are the problems needed to be considered while developing them.

Barbot, C. (2006). Low-cost airlines, secondary airports, and state aid: An economic assessment of the Ryanair–Charleroi Airport agreement. Journal of Air Transport Management12(4), 197-203.

The article uses the example of the contract of Ryanair and Charleroi to display how secondary airports and low cost carriers cooperate with each other to lower the price as well as bring more visitors. From the review, we can understand the basic ideas of the business model in LCC and airport.

Dennis, Nigel (2004) Can the European low-cost airline boom continue? Implications for regional airports. In: 44th European Congress of the European Regional Science Association, 25-29 Aug 2004, Porto, Portugal.

The paper reflects the expansion and growth of LCC in Europe and assesses their business model, arguing that the development of LCC is getting more difficult and LCC will become more similar to traditional airlines, due to the changes of secondary/regional airport where LCC fly to. With the knowledge of the future of LCC and regional airport might turn into, we have a greater insight of understanding how it could be more sustainable in both aspect of carriers and passengers.

Yi Ling Chen (Yining)

One Response to “Etivity 4 – Low Cost Airline and its sustainability”

  1. Janne Liburd says:

    Very good selection of references. WHat is your RQ?

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