The Cost Foundation of Airline Market Offerings: A System Component Analysis

Authors

• Bernice Osei, University of West FloridaFollow
• Steve LeMay, University of West FloridaFollow
• Dave McMahon, Pepperdine UniversityFollow

Document Type

Conference Proceeding

Publication Date

Spring 2025

Abstract

This paper examines how airlines' core system components—infrastructure, equipment, people, and technology—create distinct cost structures that drive market offerings, pricing strategies, and revenue streams across different airline classifications. We analyze how full-service network carriers (FSNCs), low-cost carriers (LCCs), and ultra-low-cost carriers (ULCCs) leverage their cost foundations to develop competitive market positions. The paper ties airline market offerings to consumer psychology.

Copyright

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DOI

10.20429/amtp.2025.48

Recommended Citation

Osei, B., LeMay, S., & McMahon, D. (2025). The cost foundation of airline market offerings: A system component analysis. 2025 Association of Marketing Theory and Practice Proceedings, 53. https://digitalcommons.georgiasouthern.edu/amtp-proceedings_2025/53/