Since Southwest Airlines' disruptive innovation was introduced, low-cost carriers (LCCs) have had a prominent impact on the aviation industry. Therefore, considerable attention has been paid to the LCC model. However, it is still not clear whether it is a successful disruptive innovation, or what factors and differentiation points for successful LCC service exist from the passengers' perspective. As this study's methodology, quantitative and qualitative content analyses are conducted using the word-of-mouth data of 1,854 passengers of 20 airlines. This study found that the LCC model is perceived as a successful disruptive innovation from the passengers' point of view. For successful LCC service, LC airlines should offer higher quality services than passengers' expectations using basic service elements. Also, good staff characteristics, leaving a professional impression, and providing good optional services could play a role as differentiation tools.
The Development of the Low-Cost Carriers’ Business Models. Southwest Airlines Case Study
