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/

 

 

2,702 thoughts on “Budget Airlines – How do they do it?

  1. In a way, it’s like drawing out a blueprint for your outdoor space. Like a floor plan, landscape design uses scaled proportions to create a visual representation of the place. Nature and man-made components coexist in landscape designs, which can incorporate everything from flowers and trees to lawn furniture and fountains. Overlays for irrigation and lighting may also be included into landscape designs.

  2. قیمت پنجره دوجداره و انواع پنجره دوجداره دو نکته بسیار مهم و تاثیر گذار در انتخاب و خرید پنجره می باشد قطعا شما نیز اگر نیازمند خرید پنجره دو جداره هستید این دو فاکتور برای شما نیز مهم می باشد در ادامه به صورت خلاصه در مورد این دو فاکتور توضیحاتی ارائه شده است ، لازم به ذکر می باشد اگر توضیحات ارائه شده برای شما کافی نبود می توانید با شماره های مندرج در وب سایت با ما در تماس باشید تا همکاران ما اطلاعات کامل را در اختیار شما قرار دهند.

  3. Buy products with a potential profit margin
    Now, it is time to purchase the products after you have scanned them. Checking the return of investment (ROI) is critical in this step.

    List items for selling on Amazon

    In this step, you list the products that you bought for selling on Amazon.
    Retail Arbitrage

  4. خرید سایت شرکتی ارزان
    تحویل ۲۴ ساعته با مالکیت دامنه و پشتیبانی مادام العمر
    هر شرکت و کارخانه و دفتر فنی و مهندسی برای از دست ندادن مشتریان بالقوه خود باید وب سایتی جهت معرفی خدمات و محصولات و مهارت های خود دارد.

  5. As I leant down I simultaneously thrust into her and kissed her, I whispered in her ear that I cannot believe she let them fuck and cum in her and demanded that she lick every trace of the two men off me. “What, no, no, no, not two, it was just Gary, what do you think . . .” Her sentence was cut short by me pushing her legs down back to the bed, making her thong stretch from side to side of her face gagging her. “JUST GARY” I said “you dirty fucking slut”, as I held her there in that position, I pistoned into her furiously, using my legs, hips and bodyweight, Stacey whimpered and muffled encouragement, after a couple of minutes she was shaking through an orgasm, before tapping me vigorously on my hip, I released her from being pinned. She immediately began talking “that was amazing, the best”. I hooked her legs over my shoulders and carried on driving into her, using my now free hands to squeeze her tits and pinch her nipples. “ I want YOUR cum” and “I’m sorry, I really am, I love you” I cut her off again, this time by pulling her panties off and gagging her with them. Wow they were wet, in hindsight I should have wrung them out over the dirty bitch.

  6. ملات بنایی
    ملات بنایی ، یک ملات پایه سیمانی- آهکی است که برای چسباندن انواع آجر و بلوک به کار می رود. ملات بنایی این ملات مخلوطی از سنگدانه,مواد افزودنی و چسباننده است که قبل از مصرف با آب مخلوط می شود . این ملات برای چسباندن بیشتر قطعات بنایی مثل آجر رسی,آجر سیلیکات کلسیم , بلوک سیمانی و بلوک بتنی و بلوک های لیکا استفاده می شود

  7. Our holistic business approach enables us to collaborate effectively with our customers in implementing brand strategies and helps us determine what the organization needs to do to deliver a consistent brand experience to customers.

    We are developing web design and digital marketing strategy!..
    Developing the benefits and capabilities offered by brands allows customers to own their brand strategy and brand. We work to structure and design roles and role definitions and use training academy designs to help employees learn by learning.

    https://vallettasoft.com/branding-malta/

  8. محتوا به شما کمک مي‌کند، مشتري‌ها را به سمت خود جذب کنيد تا مخاطبان درگيرتان شوند و لذت ببرند. خرید فالوور اینستاگرام همچنين مي‌توانيد بازديد کنندگان جديدي به سايت خود بياوريد. درنهايت، درآمدي براي شرکتتان داشته باشيد. بهتر است بگويم اگر شما محتوايي توليد نکنيد، از قافله عقب خواهيد ماند.

  9. In Europe, the lowest-cost airlines are also some of the biggest: seven of the top 14 European airlines in 2019 were low-cost carriers. This list includes Ryanair — the biggest airline in Europe and one of the biggest in the world — and EasyJet.

  10. European low-cost airlines can offer some jaw-droppingly low fares. But fares are just one way these airlines make money. More than 31% of Ryanair’s passenger revenue comes from “ancillary” fees. At Wizz Air, over 45% of revenue comes from add-on fees.

  11. Types of industrial filter bags
    The filter bag is divided into several categories, which are:

    Bag Duster
    Cyclones and multicyclones
    Centrifugal fan
    Scrubber
    This category is a general category and each of the above is divided into smaller categories.

  12. در بای سل می توانید انواع الگوهای چرم را به رایگان دانلود کنید. کلا بای سل یک سایت مرجع برای دانلود فایل از نوع آموزشی، صنعتی و هرگونه فایلی می باشد.

  13. What Are Online Arbitrage Deals?
    The essential part for succeeding in the Online Arbitrage business is sourcing the items. If you want to increase your profit, you have to find out lucrative deals. There are different methods that you can use for sourcing products for Online Arbitrage Deals.

Leave a Reply

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