Problems of low cost carriers in the market

Abstract

Low cost carriers are air carriers which offer air transport for significantly lower prices than traditional carriers thus making air transport accessible even to those groups of travellers for whom air transport was unaffordable in the past. Low cost carriers also cause the air travel to be more popular and wide-spread kind of transport. From the point of view of constantly increasing number of transported passengers the low cost carriers are becoming an interesting segment of business. Unfortunately, the influence of low cost carriers in the aviation market has its drawbacks as well. As an example of such a drawback can be used the effort to transfer as many cost categories as possible to other entities, which can subsequently experience economic troubles and are forced to operate with economic loss. The article focuses on the evaluation of the influence of low cost carriers in the Czech market.