Low-cost carrier business model - Encyclopedia
Wednesday, October 22, 2008 by Shrish Pandey
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