Budget Airlines – How do they do it?

EasyJet and Ryanair are two of the largest European low-cost airlines.

 

In my opinion, one of the more interesting trends in modern transportation systems is the emergence of the budget airline as an effective and reliable means of transportation. Passenger airlines have been around for decades, but these companies have typically marketed themselves as the providers of a luxury service that includes novelties such as complementary meals served by flight attendants. Only recently has the low-cost business model truly taken hold, with companies such as Southwest and JetBlue in the US and Ryanair and EasyJet in Europe. It has been so effective, in fact, that many large, “traditional” carriers have, with mixed success, tried their hand at the establishment of low-cost subsidiary airlines.

When it comes to the success of the low-cost airline business model, the question “How do they do it?” inevitably comes to mind. The answer: In a nutshell, by cutting costs.

Before I delve into explaining how these companies do cut costs, I’d like to offer the assurance that this cost-cutting business strategy in no way implies that low cost airlines are unsafe. Budget airlines, like any airline, must comply with national and international safety standards. In fact, for reasons to be explained later, many low-cost airlines have fleets primarily composed of fairly new planes.

How then do these airlines cut costs? Budget airlines utilize a variety of cost-cutting techniques in order to provide lower fares to their customers. Although some of these techniques are directly visible to the customer, many of them are behind-the-scenes and deal with internal company workings. Here are a few examples of cost-saving techniques that budget airlines use:

  • Perhaps the most obvious way in which low-cost airlines save money is by eliminating “luxury” customer services, such as complimentary in-flight food services. Exactly what services are cut varies from carrier to carrier. Many budget airlines have only economy class seating (more seats = more revenue), and allow seat reservation only at an additional charge. The uniformly arranged cabin operates on a first-come, first-served basis. This simplification reduces the number of personnel required to clean a plane and eliminates the need for expensive ticket-booking software. In addition, budget airlines often place strict limits on passenger baggage. This allows them to speed up the loading process and charge for extra bags/weight.
  • Another major way that budget airlines save money is by cutting labor costs. This can be done by training employees to perform multiple tasks. For example, a flight attendant may help to clean the plane after a flight, or a pilot may help load baggage.
  • Low-cost carriers can also save money by only selling tickets to customers directly through their website or ticket counter, instead of through travel agents and third-party websites. This technique of “avoiding the middleman” allows airlines to earn the sale price (less tax) of a ticket without some portion of the sale price going to another party.
  • Because fuel represents a large portion of an airline’s operating cost, airlines employ several techniques to reduce their fuel costs and fuel-associated costs. For example, because longer flights require more fuel, budget airlines typically fly short, direct flights rather than long flights with many connections that require passengers to transfer planes en-route. Because the price of jet fuel fluctuates greatly, low-cost airlines also speculate on the price of fuel. When the price of fuel is low, an airline may enter an agreement with a fuel provider to “lock in” a certain price for a specified length of time, wagering on the expectation that fuel prices will rise over that period of time. Airlines Budget airlines have typically had great success saving money in these ways.
  • Budget airlines also choose flight routes that save them money. This often means flying to secondary airports rather than a city’s main airport. Secondary airports typically charge carriers a smaller fee for using their facilities, even if they are no further from the city than the main airport. (This airport fee can also be reduced by scheduling flights at off-peak hours, such as the early morning.) In addition, as explained above, low-cost airlines also typically offer primarily point to point service, rather than having a main hub that serves as a transfer point for a large number of flights. This decreases the miles flown (think gas) while maximizing the number of flights offered. In addition, by limiting the number of connections, budget airlines reduce the frequency of compounded flight delays. This reduced “turn time” allows low-cost carriers to schedule more flights per day, which earns them additional revenue. (The lack of complementary food service and the cross-training of staff also decrease “turn time.”)
  • One of the most effective techniques that budget airlines use in order to cut costs is the utilization of a homogeneous fleet of fairly new airplanes. In the airline industry, maintenance is an especially costly necessity. In fact, many engine companies make no money (or even take a loss) on the sale of a new engine, but generate the majority of their revenue through the maintenance and repair of aging engines. For this reason, it is in the best interest of airlines to decrease their maintenance costs as much as possible. By having only one or a few types of planes in their fleet, budget airlines can avoid buying and stockpiling costly spare parts for numerous plane models. Low-cost airlines typically purchase new planes and resell their “old” planes after only several years of heavy use. The large amount of flight time that these planes have seen (due to quick “turn time”) and the moderate resale value of the planes make up for the cost of constantly purchasing new planes. An additional benefit to using only one type of plane is that budget airlines only need to train their pilots and maintenance crews to operate and repair one type of plane. (Some low-cost airlines even train their own staff.) This saves on labor costs, and increases “turn time.”

The advent of the budget airline may herald a new era of global transportation. In the 19th century, the steam locomotive revolutionized the way people thought about transportation by making it possible for many poor and middle class people to move great distances. This fundamental change in the world’s notion of a transportation system helped to restructure society itself. In many ways, the automobile had the same effect a century later. Will the airplane be the revolutionary technology of the 21st century? If the plane becomes easily accessible to vast numbers of people who could previously not afford air travel, one can only guess what effect it will have. It will challenge not only our ideas about transportation, but also our concept of the world itself.

 

 

———————————————————————————————————————

 

 

http://money.howstuffworks.com/personal-finance/budgeting/budget-airline.htm

http://www.low-cost-airline-guide.com/en/articles/about-low-cost-airlines.htm

http://www.dnaindia.com/money/interview_how-can-a-low-cost-airline-not-work_1379995

http://money.cnn.com/magazines/moneymag/moneymag_archive/2004/05/01/367265/index.htm

http://en.wikipedia.org/wiki/Low-cost_carrier

http://www.reidsguides.com/nfa/how.html

http://professor-murmann.info/index.php/site/fullarticle/290/

http://money.cnn.com/magazines/fortune/fortune_archive/2002/12/30/334574/

 

 

2,628 thoughts on “Budget Airlines – How do they do it?

    • beams
      تیر آهن ها نیز مانند سایر مواد تیر آهن و مصالح دارای انواع مختلفی هستند و در ساخت و طراحی آن ها استانداردهای مختلفی رعایت می گردد.
      در ابتدا لازم است دو اصطلاح مهم درباره ساختار تیر آهن را به صورت مختصر توضیح دهیم :
      جان تیر آهن : همانطور که در تصویر زیر مشاهده می کنید، به قسمت اصلی و بخش میانی تیر آهن، جان تیر آهن می گویند.
      بال تیر آهن : به کناره ها و لبه های یک تیر آهن ، بال تیر آهن می گویند.
      معایب و مزایای استفاده از تیر آهن
      تیر آهن ها نیز مانند همه مواد و مصالح مصرفی، معایب و مزایای خاص خود را دارند و می بایست متناسب با شرایط و کاربرد، به کار

      گرفته شوند.
      در زیر سعی کردیم معایب و مزایای استفاده از تیر آهن را بیان کینم :
      مزایا
      – امکان توسعه سازه پس از اتمام
      – امکان اتصال چند قطعه به یکدیگر
      – امکان عرضه آن به صورت پیش ساخته
      – معمولا در ارتفاعات زیاد کاربرد دارد
      معایب
      – ضعف در دمای زیاد
      – خوردگی و فساد فلز در مقابل عوامل خارجی
      – تمایل قطعات فشاری به کمانش
      – جوش نامناسب

    • عوامل موثر در قیمت میلگرد بستر

      برای تهیه میلگرد بستر مراحل طولانی سپری می شود .مراحلی چون تهیه مواد خام برای میلگرد بستر. کشش میلگرد بستر . برش میلگرد بستر و مراحل خم کاری و جوش میلگرد بستر و در آخر آب کاری میلگرد بستر تمامی این هزینه ها در قیمت میلگرد بستر موثر است.و تمامی قیمت های میلگرد بستر به این عوامل ارتباط مستقیم دارند .تلاش ما این است با استفاده از تیم مجرب با کم ترین هزینه و بهترین کیفیت میلگرد بستر را عرضه و تولید کنیم.

  1. Pusula ile kıble yönünüzü bulmak için gereken kıble derecesini buradan öğrenebilirsiniz. Kıble yönü bulmak için bulunduğunuz şehir için kıble açısını buradan öğrenebilirsiniz. Kıble yönü ile manyetik pusula için kıble açısını öğrenin.

  2. Find out here the qibla direction compass degree for all world countries and cities. For those who want to learn the qibla direction with compass, here is the qibla compass degree. If you want to pray towards the correct qibla direction, find out the qibla angle.

  3. ما در این مقاله سعی داریم شما را با مراحل کاشت ریش آشنا کنیم. بعضی از افراد به دلایل خاصی دچار ریزش موی ریش می شوند که از این بابت رنج می بردند و به دنبال راهی برای بازگشت مو ریش هستند. یکی از روش های پیشرفته کاشت ریش است. با کاشت ریش می توان موهای از بین رفته و ریخته شده را باز گرداند. با این روش می توانید ریش های دلخواه خود را داشته باشید. برای آشنا شدن با مراحل کاشت ریش با ما همراه باشید.

  4. شاید برای شما سوال باشد که بوتاکس ابرو چیست ؟ در پاسخ به این سوال باید بگوییم که ابرو جلوه زیبایی در صورت دارد و در مرکز صورت است و می تواند باعث زیبایی بیشتر صورت شود. با بیشتر شدن سن پوست روش پیری خود را شروع می کند و خط اخم و و چروک دور چشم و بین ابروها زودتر از بخش های دیگر دیده می شود. یکی از این راه ها که باعث می شود از این اتفاق جلوگیری شود و می تواند تاثیر گذار باشد تزریق بوتاکس ابرو است. در ادامه برای آشنا شدن با تزریق بوتاکس ابرو با ما همراه باشید.

  5. ما در این مقاله سعی داریم شما را با جراحی ترمیمی بینی آشنا کنیم. جراحی بینی یکی از محبوب ترین روش های جراحی است است که همه افراد در هر سن و سالی از این جراحی استفاده می کنند و برای زیباتر شدن اقدام به جراحی بینی می کنند. جراحی بینی می تواند مشکلات بینی را از بین ببرد و باعث زیباتر شدن ظاهر بینی شود. بعد از جراحی بینی امکان دارد بعضی از افراد مشکلات تنفسی داشته باشند یا از فرم بینی خود راضی نباشند به همین دلیل دست به انجام جراحی ترمیمی بینی می زنند. در ادامه برای آشنا شدن با جراحی ترمیمی بینی با ما همراه باشید.

  6. Find out the qibla degree here for the compass you can find your qibla direction. Get the qibla degree you need for magnetic compass or compass in your mobile phone here. Find your qibla direction easily.

  7. خدمات تاسیسات غرب تهران ارائه دهنده خدمات تاسیسات ساختمان ، لوله بازکنی شبانه روزی ، تعمیر کولر آبی و خدمات لوله کشی و تاسیسات شبانه روزی در تهران است.
    https://www.khadamatthehran.ir/%D8%AE%D8%AF%D9%85%D8%A7%D8%AA-%D9%84%D9%88%D9%84%D9%87-%D8%A8%D8%A7%D8%B2%DA%A9%D9%86%DB%8C-%D8%B4%D8%A8%D8%A7%D9%86%D9%87-%D8%B1%D9%88%D8%B2%DB%8C/

  8. خرید و سفارش محصولاتی از جمله لوازم آرایش (Cosmetics) یکی از جذاب ترین خریدها برای خانم هاست. لذت چند برابر شدن زیبایی ذاتی، رفع عیوب ناخواسته و داشتن چهره ای زیبا و بدون عیب لذتی است که هر دختر یا بانو در زندگی خود بارها و بارها آن را تجربه می کند و تا زمانی که این حس را تجربه می کند، لوازم آرایشی را با نشاط و شادابی خریداری می کند.

  9. سایت آهن یکتا ، به منظور خرید و فروش آهن آلات ساختمانی و صنعتی، یک کادر بسیار مجرب و کارکشته وجود دارند. با بهره گیری از این کادر باتجربه و بسیار توانا، می توانید از وجود بهترین کیفیت و نازلترین قیمت ، بهره مند شوید. مجموعه یکتا آهن پرگاس در زمینه پی رو، توانسته است گام های رو به جلو و مثبتی بردارد.

  10. In the world of eCommerce, without any doubt, Amazon is the market leader with about 40% of the market share, which is increasing yearly significantly. Actually, it is not surprising why people more and more turn to Amazon for their business: it is easy and comfortable to shop. Besides, it is the best choice with a low start-up cost strat your online business. This post elaborates on how you can start an Amazon FBA business in detail and walks through all vital steps to becoming a successful seller.
    Amazon Fba Business

  11. Hair Bundles refers to a single strand of hair or a “bundle of hair.” The term “bundle” is used to describe virgin hair since the hair is bundled together after being taken from a donor and sewed onto a weft. As a result, we used to refer to it as a Hair Bundle or Hair Weave. blonde bundles are a bundle of high-quality blonde extension wefts tied together (typically with a ribbon) and offered for weaving. This sort of hair is commonly sold by hair sellers who specialize in virgin hair.

Leave a Reply

Your email address will not be published. Required fields are marked *