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Bachelor Thesis from the year 2005 in the subject Business economics - Miscellaneous, grade: 1,3, International University Bremen, language: English, abstract: During the past 15 years, there has been a considerable increase in the share of air travel within Europe that is carried out by low-cost airlines. These new airlines apply the most drastic cost saving measures in order to drive air fares down to a minimum. This paper will first explore the deregulation process of the European aviation market which was the precondition for the emergence of low-fare carriers in the early 1990s. It will then take a closer look at Ryanair, the current low-cost leader in Europe and describe its history, the elements of this distinct business model, its successes, and also some limitations. The last part of the paper will concentrate on the impact that low-fare airlines like Ryanair have on the aviation market. It will explore the changes on the market that can be expected in the long-run and will pay attention to the question if and how traditional full service carriers can respond to the increased competition.