United States

The principal area of competition tends to be the full-coach or "walk-up" fare. Advance purchase fares tend to be competitive with major carriers but not significantly lower.

Traditional perceptions of the "low-cost carrier" as a stripped-down, no-frills airline, as seen on Southwest Airlines, have been changing as new entrants to the market adapt the business model in new ways. AirTran Airways, US Airways and Spirit Airlines offer a premium cabin (as did America West Airlines), while Frontier and jetBlue offer live in-flight television, sometimes for an extra fee. AirTran has XM Satellite Radio available at every seat.

Mexico

Mexico has several LCC. They were mainly created to give service to low income families and to give a cheap way for business man to travel inside the country. There are 12 airlines in Mexico that can be considered LCC, Volaris being the largest one. In 2008 VivaAerobus, a Mexican LCC, opened service to Austin-Bergstrom International Airport, with destinations everyday to Monterrey and Cancun. Some LCC are part of a bigger airline such as Aeroméxico and Mexicana which is a way to fight the treat of LCC against Full service airlines.

Russia

Sky Express is the first Russian low-cost airline focusing on internal flights. Its main base is Vnukovo International Airport. The airline was established in March 2006 by a consortium of investors which included KrasAir CEO Boris Abramovich, EBRD, Altima Partners and others, becoming the Russia's first low-cost airline. The first flight took off on 29 January 2007 from Moscow to Sochi.

Singapore

On May 5, 2004, Singapore's first low-cost carrier, Valuair was launched, prompting dominant carrier Singapore Airlines to invest in a new low-cost startup, Tiger Airways, to beat the competition. Not to be outdone, Singapore Changi Airport's second most dominant carrier, Qantas Airways, also started its Asian offshoot, Jetstar Asia Airways based in Singapore and commencing operations on December 13, 2004. Malaysia's AirAsia made repeated attempts to set up a Singaporean operation, but its insistence in using Seletar Airport, in addition to other demands to cut airport usage charges, delayed its abilities in gaining the relevant permits from the authorities in Singapore.

Middle East

Air Arabia was established on Feb 3, 2003 and started operations on October 29, 2003. Jazeera Airways of Kuwait also decided to launch a low cost carrier in October 30, 2005. Saudi Arabia also launched two low frills carrier by the name of Nas Air and Sama Airlines in 2007. The Kingdom of Bahrain has launched a low cost carrier with the name of Bahrain Air in January 2008. Dubai Government has announced its low cost carrier FlyDubai, which is scheduled to begin operations from 2009, in collaboration with Emirates Airlines.

Philippines
A Cebu Pacific Airbus A320 at Legazpi Airport in the Philippines.
A Cebu Pacific Airbus A320 at Legazpi Airport in the Philippines.

On August 26, 1988 the first low-cost carrier in the Philippines was established and launched operations on March 8, 1996. It was founded as Cebu Air (later Cebu Pacific Air), and subsequently acquired by JG Summit Holdings (owned by John Gokongwei). Cebu Pacific served initially Domestic routes at cut-price fares around the Philippine islands, until the 2000s when Cebu Pacific was granted rights to operate international flights throughout the region, which later saw Cebu Pacific become a key player in the LCC industry in the region. Cebu Pacific is seen as a key pioneer in the Low Cost Carrier movement in the Philippines, which also prompted the national carrier, Philippine Airlines to launch a subsidiary Low Cost airline known as Air Philippines in 1995, the same year Cebu Pacific was announced and launched. Most recently Philippine Airlines launched early in 2008 a low cost regional arm of the airline known as PAL Express to compete with Cebu Pacific on key regional routes and to tourist destinations not accessible by Jet Aircraft.

New Zealand

In 1995, Air New Zealand established a low-fare subsidiary, Freedom Air, in response to the commencement of discount trans-tasman services by Kiwi Airlines. Fierce competition on trans-Tasman routes led to the collapse of Kiwi Airlines in 1996. Freedom Air continues to provide discount services between Australia and New Zealand. Wholly owned Qantas subsidiary Jetconnect was set up as a low cost New Zealand arm of Qantas, with Jetconnect operating all New Zealand domestic services and several trans Tasman services in a 'wet leasing' arrangement, using the Qantas brand. Qantas has

Australia

Australia's first low cost airline was Compass which launched operations in 1990 but was short lived. In 2000 Impulse and Virgin Blue commenced low cost operations bringing fierce competition to Australian cities. Virgin Blue has become the nation's second largest airline, whilst Qantas purchased Impulse and operated it in a 'wet leasing' arrangement before transforming it into its new low cost carrier Jetstar. Qantas has launched two low cost carriers: Jetstar competes with Virgin Blue in the Australian domestic market, while Australian Airlines operated internationally to Asian destinations. In 2006 Qantas began operating the Australian Airlines operation in a 'wet leasing' arrangement which essentially means Australian Airlines crew and aircraft operate services under the Qantas brand. As at 2006, Qantas intends to continue developing a sole low-cost brand around Jetstar which will include international destinations.

Norway

In Norway the first low cost carrier was ColorAir in 1998. Their low prices were matched by competitors SAS and Braathens, and Color Air folded in 1999. The next low cost carrier, Norwegian Air Shuttle (or Norwegian), starting their Boeing 737 operations in September 2002, provided tougher competition for the merged Norwegian part of SAS and Braathens. Although Norwegian started with domestic routes, today their international operations are larger than their domestic service. By launching nonstop flights from cities like Stavanger, Bergen, Trondheim in addition to Oslo, they soon became very popular.

Finland

In Finland the competition went in a different direction, as the national carrier Finnair lowered prices so that the low-cost competitor Flying Finn was forced to cease its operations. Three months after Flying Finn's bankruptcy, SAS's regional wing Blue1 began flights to three of Flying Finn's most profitable destinations.