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Choosing an Airline

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Please make a recommendation regarding flying on a full-service airline as opposed to a low-fare discount carrier.

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Low-fare Discount Airline

In the world of globalization, changes are a necessary tool to survive competitively. In the airline industries, companies serve high class services without getting high charges (Bonne, 2003). In the industry, the price of the product and services are affected by various factors such as the demand, market structure, environment of the society and culture of the society, competitors in the industry etc. (Donnell, 2004). Due to these factors, the firms charge the different prices for the same service. In order to manage the cost of the services, the business model and cost structure of an airline plays an important role.

Due to the low cost carrier, competition is continuously increasing in the airline industry (Gill & Bates, 1949). The consumers are attracted towards these airlines because of their low cost structure and better services (Bonne, 2003). Big airline companies are facing failure due to the low cost structure so in ...

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