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

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.