Friday, 20 September 2013
Full article on economist.com
In many parts of the world, low-cost carriers are synonymous with no-frills flying. The liberalisation of the world's more mature aviation markets has resulted in intense competition on short-haul sectors, prompting cost-conscious airlines to strip out all but the most essential services. In America, the Airline Deregulation Act of 1978 paved the way for budget carriers like Southwest to gain market share. In Europe, the phased introduction of open skies during the 1990s allowed a tiny Irish company called Ryanair to become the continent’s most recognisable airline. Other regions, however, have not been so lucky. The Middle East has yet to tear down its aviation regulations, so its new breed of low-cost carriers has developed a less Spartan ethos...