Low-Cost Carriers vs Full-Service Airlines

We will conduct a survey to understand passenger awareness and attitude towards low-cost airlines and full-service airlines. The study focused on a group of passengers who used a low cost airline and another person used a full service airline. The airlines used for research are Aer Lingus and Ryanair, which are operating on a fully developed European market. Meanwhile, Malaysia Airlines and Asia Airlines are currently operating in Asia's most developing domestic market. As a result of the investigation, young people are more likely to use low-cost service providers, Ryanair accounts for 24%, AirAsia accounts for 47%, all belonging to the age group under 25 years of age.

A low-cost airline or low-cost airline (also known as a budget carrier, discount airline or low-cost airline) is a full-service airline with British Airways, KLM, Air France, Lufthansa and others. Compared with airlines, those fares are lower than usual. Airlines may charge additional fees such as food, priority boarding, seat allocation and baggage to compensate for the loss of revenue due to the decline in the price of the ticket. Level 3 airports, economy class items only. It is based on the use of network / call center reservation system and does not include GDS (Global Distribution System), no food and few loyalty programs. Do not confuse low-cost airlines with confusion with airlines in regions that do not operate short-range flights, or providing full-service airlines that lower fares.

Today there is competition between full service airlines and low cost airlines. The advent of low-cost airlines has had a major impact on providing passengers with a higher quality full-service airline. Low-cost airline phenomena are affected by leisure travelers who require a short vacation and are less demanding for high quality services (Alderighi et al., 2012). It is noteworthy that low-cost airlines can offer cheaper prices because they can reduce management costs such as "training staff, employment costs, landing fee, direct selling of tickets" (Gillen & Morrison, 2003). However, in order to compete with low-cost airlines, full service operators can offer specific services to different passengers. For example, a full service provider can provide services such as "business class, economy class, refundable and non-refundable, VIP lounge, no lounge access" (Alderighi et al., 2012).