The low-cost carrier model in the Turkish aviation industry with Pegasus Airlines as a case study

The rapid development and competitive environment in the Turkish Civil Aviation sector began in 2003 with the adoption of a law allowing private airlines to make domestic flights. These developments were pioneered by the liberalization movement in 1983, the opening of new airports with the infrastructure works carried out in the 1990s and the introduction of private charter airlines. The Low-Cost Carrier (LCC) business model, which was trendy in the world in that period, began to be implemented in Turkey in 2005, after the liberalization of the domestic routes. The main principle in low-cost air transport is based on minimizing the costs of the airline and reflecting the prices of only mandatory products to its passengers, in order to offer the lowest possible price. The aim of this study is to examine the development of the Turkish civil aviation sector after 2003 and to reveal the contribution of the LCC business model to the industry, society and the country and to present the growth rate of LCC market shares. In this study, first, the development of the Turkish civil aviation industry and its evolution, especially after 2003, were examined. Then, traditional and LCC business models are examined and the differences between their applications are presented; Then, by conducting a case study with Pegasus Airlines, the characteristics of the Turkish LCC business model and the aspects affecting the competition were revealed. As a result of the study carried out, it was determined that the aviation industry started to develop rapidly after 2003 in Turkey and the market shares of LCC's were stealing from traditional airline market shares and growing faster than them.