Performance Evaluation Of Low Cost Carriers By Using Multi Criteria Decision Analysis

The business model used by the low cost carriers is in constant transformation in order to meet the new demands of the market.Due to the dramatic expansion that this type of business model has had in the world,low cost carriers have managed to enter new markets,such as developing countries.However,different markets present different dynamics,thus emergent low cost carriers face great challenges adjusting their business model to improve their business performance.This case applies especially for developing countries,where the lack of adequate information systems affects the construction of effective and efficient business practices.Based on the above information,the aim of this research will be to contribute and strengthen the information system in regard of the low cost carrier sector,through a case study of the domestic low cost carrier industry and its performance for the developing South American country;Colombia.For this reason,the following question is raised:Can the Multi Criteria Decision Analysis(MCDA)methodology be used to evaluate the performance of low cost companies in developing countries?Consequently,for that purpose the Multi Criteria decision Making(MCDA)approach,and Measuring Attractiveness by a Category Based Evaluation Technique(MACBETH),will be applied to evaluate the performance of Low Cost Carriers in Colombia.Once the behavior of current low cost carriers in Colombia is understood,it could lead to identify how and which characteristics of the low cost carrier model are being adopted by the local carriers,and thus contributing to fill up the information gap that exists around the development of this business model in the country.