Low-cost carrier business model - Encyclopedia
Wednesday, October 22, 2008 by Shrish Pandey
A low-cost carrier or low-cost airline is an airline that offers generally low fares in exchange for eliminating many traditional passenger services. The concept originated in the United States before spreading to Europe in the early 1990s and subsequently to much of the rest of the world.
Typical low-cost carrier business model include:
* a single passenger class.
* a single type of reducing training and servicing costs.
* a minimum set of optional equipment on the aeroplane.
* a simple fare scheme one-way tickets half that of round-trips.
* unreserved seating encouraging passengers to board early.
* flying to cheaper, less congested secondary airports
* fast turnaround times allowing maximum use of aircraft
* use of direct flights reduce luggage transferred Cost.
* emphasis on direct sales of tickets especially over the Internet.
* employees working in multiple roles (limiting personnel costs)
* Aggressive fuel hedging programs
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Very nice information.
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