ABSTRACT

Beyond Europe and the US, LFAs have developed in a number of countries across the globe. Canada and Australia have been at the forefront, with countries as far apart as Japan, Brazil and South Africa also experiencing the challenges and opportunities of low fare competition. This chapter examines the Canadian and Australian contexts in some detail, charting the structures and strategies of companies like WestJet, Impulse and Virgin Blue and examining the response of incumbent airlines to these new market entrants. In both countries, the airline industry has undergone major restructuring, in no small part as a result of the competitive dynamics unleashed by the LFAs. The chapter concludes by looking briefly at some of the other countries around the world - particularly in Latin America - where LFAs have emerged and considers their experiences and prospects.