TITLE:
Finding out of the “Budget Airlines”, Third World Country and Aviation Business
AUTHORS:
Mohammed Nur E Alam, Sahib Jada Eyakub Khan, Md. Abdul Mannan
KEYWORDS:
LCC, NLCs, CASM, ASM, DAC, CGP, HSIA
JOURNAL NAME:
Advances in Aerospace Science and Technology,
Vol.10 No.4,
November
10,
2025
ABSTRACT: We developed the rise of new entrant airlines with lower cost structures than existing “legacy” airlines, which has been one of the biggest effects of deregulation and liberalization worldwide. Customers now have more options for cheaper air travel thanks to the advent of creative low-cost carriers, which has also driven more established network legacy carriers (NLCs) to cut expenses and boost efficiency. While the NLCs were forced to adjust their operating models in an attempt to maintain profitability, the LCCs were able to create operating profits even at low fares due to their substantially reduced cost structures. The “low-cost carriers” and their relatively lower operating expenses have been mentioned in passing in the discussion. We look at the features of what are now known as LCCs in the aviation sector, paying special attention to how LCC operating expenses have changed in comparison to NLCs. Generally speaking, NLCs are more conventional airlines that run extensive hub-and-spoke networks with domestic, international, and regional flights. In contrast, LCCs often run smaller networks with a greater percentage of “point-to-point” or non-hub services, while many LCCs globally run networks with “focus cities” serving as passenger connecting points. Although the qualities and goals of various LCCs have changed over time, it is challenging to define a single representative LCC. Initially, the majority of LCCs offered low rates and reduced levels of service.