There has been a resurgence of interest in low-cost long-haul (LCLH) operations as airlines seek new growth opportunities. However, researchers have yet to evaluate and compare the relative efficiency of LCLH carriers in this competitive business environment. The purpose of this paper was to...

This paper investigates the response of full service carriers (FSCs) to theentry of low-cost carriers (LCCs). We develop a model of airline competition, which accommodates various market structures, some ofwhich include low-cost players. Using data on published airfares ofLufthansa, British...