Introduction:

In the last decades, the airline industry has been growing. Due to this increment, airlines have been revisiting diverse operations and its cost structure to overcome the worldwide demand which in turn has developed a new business model called “low cost carriers”. Low cost carriers have been incrementing its participation in the market and currently, they represent a key role for both tourist and business travelers all around the world.

Method:

To achieve this goal, a SWOT analysis is performed to identify the current situation of low cost carriers in Mexico, taking into account both internal and external environment factors to maximize strengths and opportunitities within the sector while mimimazing the impact of their weaknesses and threats.

Results:

An initial clear diagnosis was obtained that allows to take strategic decisions according to the objective and required policies within the industry, especially those with activities in Mexico’s airports.

Conclusion:

Low-cost airlines have benefited the passenger by providing more viable possibilities to use air transportation. With this business model; people might skip amenities such as food, comfort, seat selection, among others; on the other hand they obtain economic benefits through affordable rates.

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