LCCs - why did they become popular?

Question

This is an economic/finance question. Can someone expalin or provide sources on why low cost carriers (LCC) have become so popular? Was it because of laws, barriers to entry, aircraft, changes in income of passengers, world events?

Thanks

Answer 1

It's a combination of several reasons.  Traditional airlines held near monopolies on various routes, leaving little alternatives to travelers.  Therefore, there was no price competition to bring levels down, and no incentive for the major airlines to offer better service.  

Once airline deregulation came about, more and more LCCs sprang up in the US, Europe, and around the world.

Low cost carriers filled a niche for travelers who wanted a direct flight on a point to point basis at a reasonable price.  Such travelers were willing to forego most extra services. The entrance of low cost airlines brought pressure on the major carriers to lower prices and/or increase service.

All in all, good for travelers...