Low cost airline - Dissertation Example

udice of people who probably who do not fly a great deal on business themselves and may regard those who do as pampered and privileged minority'' (pp14). According to Knowledgerush website ''A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates all unnecessary services. The typical low-cost'' According to the Statistics and Forecast (STATFOR) Service of Euro control there is no single best definition of a low-cost carrier. It is generally accepted that a low-cost airline, also known as no-frills or discount airline, is such carrier, which offers low fares but eliminates most traditional passenger services.

The 'low-cost carrier' business design is defined by three key elements:- Simple product: catering on demand for extra payment; planes with narrow seating ( but bigger capacity) and only a single class; there is no seat assignment; they don't offer frequent-flyer programs; ticket less travel- positioning : non-business passengers, esp. leisure traffic, and budget priced; they have short-haul point-to-point traffic with high frequencies; they are making an aggressive marketing; they are using secondary airports (e.g. regional airports); they have a strong competition with all transport carriers- low operating costs: low wages, low air fees; low costs for maintenance; reduced employment (with much lower rates of number of passengers per employer); cockpit training and standby crews due to homogeneous fleet; high resource productivity: short ground waits due to simple boarding processes, no air freight, no hub services, short cleaning times (Internet).

There are also other characteristics, which are typical for low-cost airlines. They all have in their fleet a single type of airplane, chosen to reduce. According to the Statistics and Forecast (STRATFOR) Service of Euro control, there is no single best definition of a low-cost carrier. It is generally accepted that a low-cost airline, also known as no-frills or discount airline, is such carrier, which offers low fares but eliminates most traditional passenger services. The ‘low-cost carrier’ business design is defined by three key elements: - Simple product: catering on demand for extra payment; planes with narrow seating and only a single class; there is no seat assignment; they don’t offer frequent-flyer programs; ticketless travel - Positioning: non-business passengers, esp.

leisure traffic, and budget priced; they have short-haul point-to-point traffic with high frequencies; they are making an aggressive marketing; they are using secondary airports (e.g. regional airports); they have a strong competition with all transport carriers - low operating costs: low wages, low air fees; low costs for maintenance; reduced employment (with much lower rates of number of passengers per employee); cockpit training and standby crews due to homogeneous fleet; high resource productivity: short ground waits due to simple boarding processes, no air freight, no hub services, short cleaning times.

There are also other characteristics, which are typical for low-cost airlines. They all have in their fleet a single type of airplane, chosen to reduce training and service costs. Commonly it is the Boeing 737, but it is not always like that, e.g. the Wizzair fleet has only Airbus A320.