What does the typical low-cost business model primarily rely on?

Study for the AAAE Certified Member Test. Use flashcards and multiple choice questions, complete with hints and explanations. Get ready for your exam success!

The typical low-cost business model primarily relies on operating out of secondary airports within a larger catchment area. This strategy allows low-cost carriers to minimize operating expenses by using airports that have lower landing fees and less congestion compared to major international airports. This can lead to reduced turnaround times and operational efficiency, which are critical for maintaining lower ticket prices. Additionally, secondary airports often have fewer restrictions and regulations, allowing airlines to increase their flight frequencies and offer more affordability to travelers.

Operating from these airports can also attract cost-sensitive customers who may prefer the reduced fares associated with such airlines, even if it means traveling a bit farther to reach the airport. This approach effectively broadens the market by tapping into underserved regions or demographics that might not have access to traditional carriers.

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