Low Cost Carrier Characteristics

The idea of ​​entering the world of all cost careers at a low price is not new. As early as 1977, Laker Airways established "Sky Train" between London and New York. Even when the service has never been successful, an increasingly lower cost airline will be established in the process of deregulation, and the development of its own low cost strategy will begin. Today, looking at the home page of a low-cost airline, I have to say that despite the problems of September 11, 2001, 2002 SARS, and the Iraq war of 2003, almost all operators have succeeded It will not.

Low cost or simple operators are not described separately and their formats are different (Mercer Management Consulting, 2002), but there seems to be general agreement on their basic characteristics. In general, low-cost airlines offer low fares by using a wide range of strategies that are not used by all low-cost airlines. These strategies eliminate some of the cost factors of production functions and lower the level of many remaining costs. In doing so, the services they offer are more restrictive and in some cases will be charged separately for the attributes they provide.

Low cost airlines (also known as light airlines or discount airlines) are airlines that generally offer low fares in exchange for eliminating many traditional passenger services. (LCC) or models represented by low cost airlines are not innovative and some LCCs are related to major and traditional airlines, but their evolution is a rapidly dominating management model , The fastest growth has been achieved through the development of the Internet. The simple act of providing a cheap fare does not necessarily make them LCC while many airlines are offering fares at a cheaper price with more than one route at a time. Low price airline. Its special purpose is to lower the fare at a lower cost than conventional carriers.

Low-cost airline LCA or LCLF (low cost, low fare) airlines has made significant progress on regular flights over the past decade. In 2004, a total of 80 million people used a European budget airline for 47 million people in 2003. These airlines are creating a cost competitive advantage in the following points. Charter service is not managed according to the published schedule, so there is no need to operate with uneconomical load. They are usually developed by intermediaries (usually tour operators), so they are neither promoted nor promoted by the airline itself. Many of the charter flights are sold as part of the package holiday, and the price includes flight, accommodation, and other services. These packages are usually cheaper than normal fares. In addition, charter airlines frequently operate on routes or airports that do not have scheduled flights.