Page 128 - Introduction to Tourism

even worse, suffering over $5.6 billion in losses in

2005. The U.S. airline industry reported a modest profit

for 2006. It was the first year since 2000 that they have
earned a profit after cumulative five - year losses

totaling a

staggering $35 billion.

Low - Cost Carrier

A low - cost carrier (LCC) or low - cost airlines — also

known as a no - frills, discount, or budget airline — is

an airline that offers generally low fares by eliminating
many traditional passenger services. This concept,

experienced first in the United States with Pacific

Southwest Airlines in the early 1950s, gave birth to one
of the biggest success stories of the last twenty years

in the air travel industry. Southwest Airlines, which

began service in 1971, is LCC ’ s biggest U.S. success

story. They have been a model that other low - cost
carriers have emulated. The LCCs now represent over

30 percent of total air travel in the United States and 25

percent in Europe, and are making gains in Asia.
Some typical business practices of LCCs are:

· One passenger class

· One type of airplane to reduce fleet maintenance
costs

· Using secondary airports

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