Customer often see price as an indicator to service quality, so that price has an impact to the degree of quality (Zeithaml & Bitner, 1996).
To airline industry, pricing strategy is used to maximized profit by targeting different market segment; vacationers, business travellers and group operators.
Segmenting customer lead to price differentiation in an airline industry(De Pew & Stripling, 2003).
Low cost airlines serve basic accomodation and operates singleaircraft types which is totally different strategy adopted by full service airlines.
Those factorsindicates that low cost airlines pricing strategy lead to relatively low fare.