Effect of low-cost airlines on communities

The U.S. Department of Transportation coined the term in 1993, to describe the considerable boost in air travel that invariably resulted from Southwest's entry into new markets,[1] or by another airline's similar activity.

An MIT study released in August 2013 found newer, smaller airlines were having a greater impact on lowering the average price of a ticket where they fly.

At the same time, JetBlue, Allegiant, and Spirit Airlines were associated with dips of $32, $29, and $22, respectively, in markets that they entered.

However, other airlines' lower fares don't account for the ancillary products that are a significant component of their business.

The article also draws attention to JetBlue's much smaller footprint in overall domestic passenger traffic, making any claims about a widespread effect much more tenuous.