Originally Posted by
ToiletDuck
I was curious about what a LLC really is and how it applies to an airline. I was reading this and was wondering if I could get some clarification. Are stockholders the "members"? They don't actually get a share of the net gain or loss each year do they? I'm confused how a LLC can be on the stock market. Perhaps someone with experience dealing with this could answer?
I think you're confusing LLC and LCC. They are not related...
An LLC is a Limited Liaibility Company, which allows an individual or small group to do small business activities as a corporate entity without all the paperwork of a real corporation. It also seperates your personal assets from your business assets for liaibility purposes. I use one of these for real estate stuff that I do. I'm certain that an LLC could not be listed on any stock exchange, you would need to form a regular corporation for that.
A LCC is a Low Cost Carrier, or discount airline. SWA was the original model for this, and AWA was a somewhat watered-down version of a LCC. LCC's tend to use fewer hub-and-spoke operations and more direct flights, but this model does not allow them to serve every destination, especially smaller cities. Traditional hub-and-spoke works better for that. Today, all of the majors have adopted lower cost structures (or had them jammed up their butts) and are trying to operate with some characterists of LCCs.