Table 3.

Description of strategies in the Canadian airline industry

Strategy	High cost, Full service		Low cost, No frills
Network type	Hub-and-spoke, scheduled service	Point-to-point, scheduled service	Point-to-point, charter/scheduled	Point-to-point, charter	Point-to-point, scheduled
Characteristics	High fixed costs	Moderate fixed costs	Low fixed costs	Low fixed costs	Low costs
	High labour costs	Moderate labour costs	Moderate labour costs	Low labour costs	Lower labour costs
	Inflexible job tasks	Moderate job tasks	Moderate job tasks flexibility	Flexible job tasks	Flexible job tasks
	Full service	Flexibility	Low-end full service	Low-end service	No frills service
	Multiple classes	Full service	Single and multiple classes	Single class (few wider seats)	Single class
	High Frequencies	Multiple classes	Low frequencies	Low frequencies	Increasing frequencies
		Low frequencies
Example	Air Canada American, United, British Airways, JAL	Roots Air-failed in 2001	Canada 3000, Royal Airlines (pre-merger)-failed in 2001	Air Transat Skyservice	WestJet
					CanJet
					Ryanair
					Southwest
					Jet Blue

Source: Korol (2000).