Abstract
World-wide tidal wave of Open Sky has created an opportunity for NWC (Network Carriers) to organize global alliance and expand their global reach to the world market. In this context, LCC (Low Cost Carriers) are often grasped and argued as competitive issues between both airline businesses. This study tries to reveal fundamental difference between two airline structures, by clarifying concept of “LCC Business Model”. Then, this study further reveals that such fundamental difference would urge them to coexist as newly born airline infrastructure and contribute to social surplus by way of new demand for low fare and Point-to-Point network produced by LCCs. Finally, this study observes and examines LCCs being transformed to NWC in the US market, and penetrates possible transformation and prospect of LCCs in other market. This study would expectedly contribute to conception of Japan Open Sky policy to come.
