| Summary: | By questioning the profit model underlying low cost strategies, the article analyses the yield management-based fare policies, low margins per unit sold and high capital turnover characterising this sector. Low cost strategies involve much more than cost-cutting alone and are in fact redolent of the kinds of relationships that merchant-artisans used to entertain with peasant-workers under the “putting out system”. By closely controlling households’ disposable income, low cost firms are at complete liberty to enforce an employment relationship organisation and management method that is akin to demand-driven economics. Desalarisation, a weaker subordination relationship and the persistence grey zones all translate aspects of this shift. profitability, price, capital turnover, putting out system, desalarisation
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