The Differences Between Low-Cost & Ultra-Low-Cost Carriers

In the United States, there are two different kinds of business models used by budget airlines, carriers that attempt to discount the prices of legacy carriers to appeal to price-conscious passenger demographics. The original low-cost carrier business model emerged first in the years following the enactment of the Airline Deregulation Act of 1978, a piece of legislation that gave airlines significantly more control over what routes they flew, what fees they charged passengers, and what services they offered onboard.