The Concept of Low-Cost Airlines as a Way of Increasing the Economic Efficiency of Air Transport

Abstract

Armenia’s air transport lags behind world air transport in the practice of applying innovations in the economic field. Freedom of management, freedom of air – the policy of the "open skies", the world processes in this area, which are aimed at developing the system of this type of transport, promoting progress in the process of modern processes, overcoming the problems of the industry, have created a new situation in economic relations. The problems associated with providing and regulating the activities of airlines, providing an equal competitive environment, pushing competitors out of the industry through unhealthy competition, are still relevant. In the article, by studying the concept of lowcost airlines, changes in the sphere of managing world air transport are revealed, which have not yet reached Armenia, since even the problems associated with the deployment of the traditional business of airlines have become actual. Based on the secondary analysis of research data, using the methods of comparative analysis, through the disclosure of the advantages and disadvantages of the old and new models, the advantages of using a low-cost concept for increasing competitiveness, the dynamic and harmonious relationship of their business model with the capabilities and expectations of consumers, models and structures of economic activity of airlines, and with changed practices of management.