Low Cost Air Travel: Spreading its wings in former Yugoslavia

After the breakup of Yugoslavia, the newly established countries had to rebuild their infrastructure. One of the issues was attracting air traffic to their national airports. Apart from the early years, this research focuses on whether the introduction of low cost air travel has contributed to the passenger growth that was recorded in the past years. I estimate that there is a unique effect of LCCs (Low Cost Carriers) apart from an effect through economic indicators. Though LCCs can contribute to the development of passenger numbers and perhaps the economy, the fragile situation in the region as well as the approach of governments to this issue is addressed as potential reason for sub-optimal performance.