Low-cost carrier

Low cost airline ( also briefly cost airline, budget airlines, English low- cost carrier, no frills airline, budget airline) is the established term for airlines with market strategy, flights, waiving the usual comfort features offer considerably cheaper than traditional airlines. Services, such as supply of food and drinks, are, if at all, usually only offered for a fee. Thus, low cost airlines are in contrast to so-called network carriers.

Formation and development

The principle of low cost airlines originates from the USA and was started there by Southwest Airlines in 1971. The first European airline to this category was Laker Airways, which offered intercontinental cheap flights so but failed. 1978, the Airline Deregulation Act was passed in the United States. This low cost airlines were promoted because they were able to introduce, among other things, more favorable prices, but also the corporate concentration and the longer-term rates increased.

Ryanair took over the model in 1991 and expanded throughout Europe since 1995. Flew in 1994 only around three million passengers with low cost airlines, most with Ryanair, so there were about 17.5 million in 1999 already. 1995 British Airways decided to create its own low-cost division named Go, the operation from the airport London Stansted recorded in 1998. In the same year, easyJet took from London Luton flight operations on. KLM followed the example of British Airways in 2000, founded by the low cost airline Buzz. In Europe, easyJet and Ryanair are among the most successful low-cost airlines as a result of the deregulation of air traffic they were able to increase their passenger numbers enormously. Since Ryanair in February 2002, has opened away with Frankfurt -Hahn a base 100 miles from Frankfurt am Main and in the fall of 2002, with German and Hapag -Lloyd Express (now TUIfly), two German low cost airlines have started from Cologne / Bonn Airport, the low cost airlines are also booming in Germany. Average, every fifth flight is conducted in Germany from a low cost airline. Thus, the share of low cost airlines has increased fourfold in the number of flights in Germany in the last six years. Environmental organizations have criticized this development.

Ranking for Departures

In the two times the annual Low Cost Monitor DLR and ADV a ranking among circulating in Germany low cost airlines was determined. The departures were counted in a week in January 2011, with German domestic routes in both directions of a route were considered.

Characteristics of low cost airlines

There is no generally accepted definition of a low cost airline. If an airline is called a low-cost airline, it has certain features, not all features will be met by every airline in the normal case. Frequently mentioned features are:

  • Uniform aircraft fleet ( only one aircraft type), which is well utilized
  • Low ticket prices
  • Booking almost exclusively via the Internet
  • Use of smaller airports and / or your own terminal to keep the airport fees low
  • Minimum crew, the law still allowed little or no organization of employees in unions
  • Only one board class, close seat pitch, seat reservation surcharge
  • Additional services only for a fee ( no-frills concept )
  • Range of only point-to -point connections, eliminating the use of the hub concept
  • No loyalty programs or frequent flyer programs

Also, traditional airlines to meet some of these characteristics as they take on, for example, savings that were introduced by the low-cost carriers, such as the booking of tickets on the internet. On the other hand, can take distance low-cost supplier of parts of the no-frills concept. Therefore, it is not always possible to classify an airline clearly as a cheap provider.

Normally you will receive low cost airlines no alliances with other (cheap) airlines one. Some European companies are members of the European Low Fares Airline Association, which represents the common interests of low cost airlines.

Business Model

The economic basic idea of ​​the low cost airlines was to offer flights at prices significantly below those of the conventional airlines. This man could afford air travel, which this basically asked, which to date cheapest rates but were still too expensive. To still be able to operate profitably, had to lower their costs compared to conventional suppliers clearly the provider. Today, there are only the pure low cost model, various other business models in the low cost segment. For example, start -established airlines cheap flights daughters to the Group to regain market share, or even try to reduce their costs dramatically. You may also subsidized, government, airlines can participate in the market for low -priced flights without having to lower their costs.

Moreover, various business models merge in a group, as is the case for example with Air Berlin. This offers " low cost " charter and long-haul flights. In addition, there are numerous transit or feeder connections. Air Berlin therefore describes himself as a hybrid carrier.

Aircraft types

Low cost airlines use because of low purchase and maintenance costs primarily a single-aisle aircraft such as the Airbus A320 or the Boeing 737 series. Thus, for example, operates Southwest Airlines Boeing 737 exclusively and solely Wizz Air Airbus A320. Single-aisle aircraft provide adequate passenger capacity and are therefore flexible. If a machine fails, can easily be used instead another.

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