This chapter analyzes how competition unfolds in the air transport sector, distinguishing between short- and medium-haul markets and long-haul routes. It first focuses on the low-cost revolution that reshaped short- and medium-haul travel, highlighting the rise of carriers such as Ryanair and easyJet. The low-cost model is characterized by simplified services, high aircraft utilization, and point-to-point networks. The chapter discusses two faces of low-cost airlines: ultra low-cost and hybrid carriers that incorporate elements of full-service offerings. It also explores how legacy airlines reacted—through the creation of their own low-cost subsidiaries, cost-cutting programs, or business model adjustments. In the long-haul segment, the chapter examines the shift toward upmarket strategies by traditional airlines, the challenges of applying low-cost models on long-haul flights, and the emergence of niche players targeting specific customer segments. Overall, the chapter reveals that competition takes different forms depending on route length and that strategic positioning varies from cost leadership to differentiation.