ABSTRACT
Airlines such as Laker Airways and People Express were among the wave of budget airlines that emerged following deregulation. Allegiant, Frontier Airlines, and Spirit Airlines pioneered a new business model that now represents a new category of airline known as the ultra-low-cost carrier (ULCC). Ticket distribution costs are another major area where the entire airline industry is attempting to reduce costs. The initial step airlines took to reduce ticket distribution costs was to cut travel agent commissions. Then, through the Internet, airlines moved to electronic ticketing and pushed ticket sales through their online websites. Airlines like JetBlue are able to achieve high aircraft utilization rates since they focus on having quick turnarounds. Legacy airlines are nibbling at amenities that passengers have long taken for granted, and they are beginning to charge for some of these services, such as ticket changes and cancellations. Copa Airlines is another airline seeking to diversify its business model by launching a Colombia-based ULCC in late 2016.
