![]() ![]() Although it is conclusive for the airlines to offer competitive fares, academic studies are rare in such a field. This is specifically paramount for airlines to increase the market share in the air transport industry. Part of the 4Ps is the pricing strategies of the aviation industry. Successful marketing strategies are just as substantial as the engineering for the airlines to survive. Thereafter, intra-EU in the 1990s (Schnell, 2003 Knorr & Žigová, 2004 Civil Aviation Authority, 2006 Banerjee & Kanathia, 2006 Graham & Shaw, 2008 Fageda et al., 2011 Diaconu, 2012 Westermann, 2012 Laurino & beria, 2014), and since then the cost of air travel in the US and Europe has fallen and the size of the airline industry has grown rapidly (Karivate, 2004). The highly air transport competition has grown extremely (Banerjee & Kanathia, 2006 Vidović et al., 2006 Button & Ison, 2008 Fageda et al., 2011 Hamidi et al, 2013 Acar & Karabulak, 2015 Bergantinoy & Capozzaz, 2015) since air transport deregulation in the US in 1978 (Driver, 2001 Vidović, Steiner, & Babić, 2006 Banerjee & Kanathia, 2006 Button & Ison, 2008 Gross & Lück, 2011 Detzen et al., 2012 Sarilgan, 2016). Thus, In order to struggle the rivalry and to be sustainable, air companies have to take in consideration the cornerstones of air transport industry, apply a convenient strategy, and improve continuously (Fedosova, 2016). The main differences are the levels of in-flight service, and the fact that Australian and New Zealand low cost carriers operate on longer distances, such as coast-to-coast domestic flights in Australia, trans-Tasman flights, and flights to the South Pacific islands, and increasingly to Asia. The paper concludes that low cost carriers in this region differ from American and European low cost carriers, in part due to the geography of the countries. Thus, this paper offers a brief history of low cost carriers in this region, and compares the business models of low cost carriers currently operating in and between Australia and New Zealand. However, academic literature pertaining to the development of low cost carriers in Australia and New Zealand is scarce. The business model of low cost carriers has revolutionized air travel, and both media and academics paid ample attention to these in America and Europe. While these new airlines have a relatively long history in North America, more recently they successively emerged in markets such as Europe, Asia, Oceania and Africa. Traditional "legacy" carriers have been challenged by new no/low-frills, low cost carriers. Over the past few decades, the traditional aviation market has seen significant developments. ![]()
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