ABSTRACT
This chapter offers a concise survey on the dramatic developments exemplified by the European low cost carrier (LCC) market. It discusses the historical path of the European aviation deregulation process, which ultimately resulted in the formation of over twelve 'no-frill' airline carriers (mainly in Great Britain and Germany). The chapter illustrates the activities of these airline carriers and highlights the major European LCCs: Ryanair, easyJet, Germanwings, Hapag-Lloyd-Express (HLX), Air Berlin and Germania. It details the fundamental economic foundations inherent in the current day activities of LCCs. The analysis characterizes and compares the situation of the LCCs and traditional scheduled carriers with regard to future chances and dangers involved from a competitive economic viewpoint, and pays specific attention to the possibility of predatory behaviour. One of the main causes of predatory pricing in the aviation market is the increased competition and efficiency resulting from the deregulation of this sector and the privatization of state-owned airlines.
