How Europe's Low-Cost Carriers Sidestepped Traditional Carriers' Competitive Advantages

The initial appearance of U.S. low-cost carriers forced incumbents to create new forms of competitive advantage. These were successful hindrances for nearly two decades. Concurrently, incumbents in Europe implemented similar tools, although within a regulated market. However, Europe's low-cost airlines were more successful and had a greater initial impact in their early years than their U.S. compatriots. This paper will attempt to highlight some of the differences between the two markets and explain why European low-cost airlines had more advantages following their market deregulation and sidestepped traditional carriers' competitive advantages.