NOTE: this activity should take approximately 10 minutes to complete

Although the services provided by LCC’s and FSC’s have converged and cannot be differentiated in some cases, LCC’s do not use the hub and spoke model, whilst FSC’s continue to do so. What are the financial advantages and disadvantages of using one model over another?

There is a difference between a non-stop flight and a direct flight. A non-stop will depart from an airport and proceed directly to the destination. A direct flight can also proceed directly to the destination but it may also stop en-route, for a number of reasons. The aircraft may need to refuel or the route could involve an additional stop to offload passengers or collect additional passengers.

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