The case provides the comparative analyses of two different business models – the network carrier and the low cost carrier (LCC) – that are used in the airline industry of U.S. Each of the model possesses a different value proposition. Organizations generate revenue through parallel but different models of profit. But many of the researcher found the LCC model as problematic, with significant development, these two models co-exist for around forty years. By revealing the ways through which the major network carriers succeeded to develop its model for a longer-term before industry structural changes required completely reform, the case offers the in-depth evaluation of how the business models were formed, how competition affected the process of evolution, and the significance of tuning a company’s model and continually developing.
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