Of the two largest low-cost airlines one is unionized and the other isn’t. Although, most of Southwest’s workforce is unionized and all of JetBlue’s is not, the aggregate cost structure of the two carriers is almost identical; unionization isn’t necessarily correlated with high labor costs for low-cost carriers. These carriers also use fewer employees, because they operate point-to-point networks. The main advantage of the low-cost carrier is that it can compete on price with the high-cost traditional carriers. The functional structure of the low-cost carrier is perceptible; moreover, this paper argues that the impact of this unique structure on the airline market is just as evident.