Despite the observed increase in the degree of heterogeneity among the LCCs, there are certain key features
that can be identified as the core of the original, consecrated LCC model. Doganis (2010) provides a detailed
account of these features and how they contribute to the lower unit operating costs that led to the extraordinary
success of the LCC model. The discussion below is based in part on Doganis’ (2010) analysis of the core LCC
model pioneered by Southwest Airlines. Southwest Airlines was the first truly low-cost airline that started
expanding its operations right after deregulation. Over the years it grew constantly, and while its pricing strategies
were aggressive, Southwest Airlines is the only airline in the U.S. that remained profitable every year since its
inception. Southwest’s business strategy was soon followed by other carriers such as Value Jet (Air Tran after
1998), American Trans Air (ATA), Frontier and America West to name a few. The number of LCCs started to grow
fast especially during the 1990s.