Will America’s Low-Cost Carriers Survive?

This article analyzes how network-based advantages in the airline industry can weaken competitive constraints without fitting neatly into classic hub-and-spoke conspiracy doctrine. The author shows how legacy carriers, by leveraging hubs, frequent-flier programs, and product differentiation strategies such as basic economy and premium economy seating, have been able to undermine the competitive discipline historically imposed by low-cost and ultra-low-cost carriers. While not alleging collusion,