Budget Airlines – How do they do it?

Posted on by

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/

 

 

3,007 thoughts on “Budget Airlines – How do they do it?”

    • Low-cost airlines are able to keep their fares low in part by employing fewer
      driving directions people. Employees can be trained to multitask to achieve this goal. A pilot may assist with baggage loading, or a flight attendant may help clean the plane after landing.

      Reply ↓

  3. Al + Blockchain = Intelligent Chain
    Artificial intelligence (AI) and Blockchain technology are two of the most transformative technologies of our time. Both have the power to disrupt industries, transform businesses, and change the way we live and work. Now, imagine combining these two technologies to create a platform that offers unique privacy, security, and computational power. SENEX is an AI-powered Blockchain supersystem that leverages the advantages of both technologies to offer next-generation Blockchain Intelligence and a completely new path in decentralized AI computing, privacy and security. Now the convergence of AI and Blockchain, The Intelligent Chain is here.

    Privacy and Security
    SENEX utilizes Blockchain technology to create a decentralized supersystem, which means that data is distributed across the network instead of being stored in a single location. This approach has several advantages. First, it makes it more difficult for hackers and attackers to access and compromise the data since they would need to attack multiple nodes simultaneously. Second, it diminishes the risk of a single point failure, which means that if one node goes down, the rest of the network shall operate properly.

    What differentiates SENEX beyond the traditional Blockchain models is Artificial Intelligence (AI) being incorporated into the system. This allows SENEX to distribute required processing power and storage for our artificial mind across the supersystem while keeping the information private and secure and giving the users benefit of anonymity. Essentially, SENEX is a Smart Blockchain powered by AI, an Intelligent Chain that stores and processes data on a decentralized network while using AI to extract maximum information from it in order to make macro managerial decisions and even to predict the future.

    Let’s dive a bit deeper into how the SENEX Intelligent Chain operates. When a user inputs data into the system, SENEX encrypts it and distributes it across the network. The data is split into fragments, and each fragment is stored on a different node. Then it uses our unique AI to analyze the data and perform computations and predictions on the data, such as running machine learning models or conducting data analysis. The results of these computations will be then sent back to the decentralized applications to be used by end-users, who can access them using their private key.

    The use of AI agents in SENEX ensures that the data is processed efficiently and accurately. Since the computations are distributed across the network, they can be performed in parallel manner, making them faster than traditional centralized systems. Moreover, since the data is encrypted and fragmented, it is almost impossible for anyone to access the entire data.

    SENEX’s approach to privacy and security has several benefits. For businesses, it means that they can store sensitive data on the network without being worried about data breaches. For individuals, it means that they can use the system to store their personal data without the risk of it being compromised. Additionally, since SENEX is a decentralized AI supersystem, there are no intermediaries involved consequently it reduces costs and increases efficiency.

    Computing Power and Data Platform
    What sets SENEX apart is its ability to perform powerful calculations through AI agents on Blockchain technology.

    Thanks to SENEX ‘s Intelligent Chain, through its advanced and unique puissant AI agents, the platform can process an enormous amount of data with ease. This makes it an ideal platform for businesses that require large-scale data processing, such as finance, healthcare, and logistics, among others. With the Intelligent Chain, businesses can harness the power of Blockchain technology to process data securely and efficiently, while AI agents handle complex calculations in real-time.

    SENEX’s AI engine is designed to learn from the data it processes, enabling it to provide accurate predictions and insights. The platform can analyze vast amounts of data from multiple sources, including social media, news, and financial data, to identify patterns and trends. This makes SENEX an ideal platform for businesses that require data-driven decision-making, such as investment firms, governments, and marketing agencies.

    In addition to its powerful AI capabilities, SENEX is also an enormous data platform. The platform uses a decentralized network to store data, ensuring that it is secure and accessible at all times. This makes it an ideal platform for businesses that require large-scale data storage, such as research institutions and government agencies.

    Reply ↓

  10. What does a software development company do?
    Software development companies work on the codes used to produce programs for computers and mobile devices to perform operations and tasks for a certain purpose or purposes, and the management stages of these codes. These technological devices are told what to do by giving commands with the help of codes. Since software occupies a large and large space, software projects and their diversity are increasing for this reason. The internet has come to an important place in order to present these changing projects. With the development of the Internet, the limits of the realization of software projects have been lifted. Software development companies undertake the implementation of these products and services. Software companies produce products and services that meet the needs and demands of their customers. Software development companies also use the necessary technologies while creating the product. It may be wrong to put a limit on the software company for their projects. Because, depending on the knowledge, talent, and imagination of the software developer in the software company, creating projects can vary greatly. When it comes to technological products and services, software companies come to mind. Websites are at the forefront of these products and services. Software companies design and develop websites in line with the needs. Apart from these services, creating mobile applications and websites that are compatible with mobile applications is also one of the jobs of software companies. These services create different products suitable for corporate and individual use. Software development companies, which are generally preferred by software companies and businesses, produce projects such as CRM, ERP business tracking systems.

    http://www.vallettasoft.com

    Reply ↓

  12. TOPBANDAR yakni casino online terpercaya yang telah berbisnis lebih dari 10 tahun. Ini menawarkan beragam tipe permainan kasino dan perpustakaan slot yang besar. Itu juga diketahui dengan pembayaran pesat dan RTP tinggi. Kasino juga mempunyai saluran dukungan pelanggan 24/7 dan regu yang ramah.

    Reply ↓

  14. Electronic commerce, or e-commerce, as it is known, is the name given to the type of commerce where products and services are brought together with consumers on the internet. In e-commerce business, the sale, distribution, payment, and advertising processes of products are carried out over the internet. A kind of e-commerce is the name given to the realization of traditional commerce methods on the internet or mobile platforms.
    One of the first questions that people and businesses who want to sell products and services on the internet with e-commerce in Malta are looking for an answer is how to do e-commerce business.
    Today, people and businesses that want to sell products on the internet with e-commerce started to sell by establishing an e-commerce site or through e-commerce marketplaces. It is known that some businesses sell through both e-commerce websites and marketplaces.
    Whether sales are made through e-commerce websites or e-commerce marketplaces, businesses that want to do e-commerce should first get information about e-commerce processes. After getting information about e-commerce and learning e-commerce processes management, people prepare a business plan and determine how they will progress in the e-commerce sector. After that, they start selling products on the internet by setting up and customizing the e-commerce site.

    http://www.vallettasoft.com

    Reply ↓

  15. It’s interesting to learn about the difference between low-cost and budget airlines, and how they approach cost-cutting measures in different ways. While both types of airlines prioritize efficiency, it’s clear that budget airlines take this to the extreme by offering few amenities and charging for everything beyond basic transportation. It’s a reminder that cost isn’t the only factor to consider when choosing an airline, and that it’s important to understand the differences between them. Great post!

    Reply ↓

  16. How Long Does SEO Take?
    Brands considering starting SEO studies are wondering the answer to many questions on the subject, considering the cost of this work. The first question in their mind is; “How long does SEO work take?”. The decision process can be challenging for brands, as SEO studies are a costly and time-consuming way of working.

    Search engine optimization studies are based on analysis, planning and strategy. In line with these criteria, a preliminary study is made for the brand, and the average process is presented to the customer. As a result of the work to be done, the process varies between 3-6 months on average. This period varies according to the competition in the sector. Although it takes this long to get results, every move made within the scope of SEO work starts to get a reaction after 2-3 weeks. Writing a whitepaper, keeping the blog up to date, and starting other work begins to gradually increase website traffic. Starting from the 3rd month, Google likes the brand’s website more and is pleased with its constant updating. If the necessary work has been done while approaching the 6th month and according to the competition situation, the website will rise to the first place. How long does SEO work take? The answer to the question can sometimes take one year.

    http://www.vallettasoft.com

    Reply ↓

  17. What is SEO?
    The word SEO consists of the initials of the phrase “Search Engine Optimization.” If we examine the SEO work; As the name suggests, we can describe it as a study that makes internet projects suitable for search engines with specific rules and thus ensures that the sites rise to the top in search engines. With SEO, websites become more visible in all search engines, especially Google, and traffic increases.

    How is Google SEO Work done?
    Since the most used search engine today is “Google,” the organization that determines SEO and internet rules has also been “Google.” “Google” always prioritizes quality and popular sites in its search results. We call quality on-site optimizations, technical structure, and text content. The issue of popularity is also considered as work done outside the site. SEO work actually has preliminary preparation and planning. Projects that progress in line with the right preliminary analysis can consistently achieve success. To give an example of these preliminary analyzes, we can show keyword research, competitor analysis and sector analysis.

    http://www.vallettasoft.com

    Reply ↓

  21. How is Vallettasoft Web Design Agency Malta different from other software companies?
    Fast and Accurate Support
    Project design, proposal, production, and project delivery and after the requests of our customers; We provide timely and accurate answers. Being relevant, reliable, and disciplined are our greatest service principles. Easy availability, accessibility, and fast service are our important advantages.
    Affordable Cost
    Compared to our competitors, our products are much more economical with the advantages of “material brands used, our purchasing power, our production speed, our profitability and our more flexible payment terms” compared to our competitors in our project analysis.
    Innovation and Solution
    Project evaluation and analysis are made, project decision criteria are classified, and best practice methods are selected. Closely following technological developments, implementing new innovative applications that add value to projects, and providing special project service and production solutions are among our primary goals.
    Trust and Value
    We put our “customers at the center” in every decision we make, and we know that if our customer wins first, then we win. We look at all kinds of projects in the long-term, not the short-term. Behind our customers’ demand for us is the proven trust in our services, even after project delivery.
    Sustainable Relationship
    We take pride in our post-production services. The satisfaction of our customers is extremely important to us. We do not forget our customers after project delivery! Even though years have passed since the work we have done, we still continue to support you.
    Application Flexibility
    All changes that may occur during the project process are reflected in all applications in line with customer notifications.
    If you are looking for a reliable software development company in Malta to grow your business, you can apply to Vallettasoft Web Design Agency Malta without hesitation!

    http://www.vallettasoft.com

    Reply ↓

  22. Why Vallettasoft?
    It is of great importance that the e-commerce software, which is the most important factor when it comes to selling online in Malta, is technically error-free and optimized for search engines.
    In addition, your management panel should be very simple and user-friendly so that you can easily manage your e-commerce site and make changes without the need for software or technical knowledge. The software you will have with Vallettasoft, E-commerce Packages includes all these factors.
    Even if everything is perfect technically, your communication with your service provider is also very important for your business to run smoothly.
    As Vallettasoft Web Design Agency Malta, providing boutique service to our customers, each of our customers stays in touch with a special support specialist, and they meet with the same support specialist every time they call.

    http://www.vallettasoft.com

    Reply ↓

  23. Your post on budget flights was insightful and informative. It is fascinating to learn about the strategies companies use to reduce costs and remain competitive in the market. Looking to improve your digital marketing services that way? Look no further than Prime One Global for all your digital marketing needs. Our team specializes in providing the best services like SEO, PPC, Social Media Marketing and Website Design to improve your online presence and increase traffic to your business. Explore our exceptional digital marketing products and services by visiting our website today. Let us help you achieve your marketing goals and take your business to the next level.

    Reply ↓

  27. An insightful post on budget airlines and their strategies! It is very interesting to know how they offer affordable prices. Great read! That way I sometimes spend my free time reading articles and playing online games, that’s when I read your post. But a few days ago I went to a public site called bungbet168.com in search of an online game and it had a wide variety of games. I chose the mobile online casino and played. As such, you can visit the website at your leisure.

    Reply ↓

  31. Bu yazı gerçekten ilginç ve bilgilendiriciydi. Bütçe havayollarının nasıl çalıştığına dair birçok yeni bilgi öğrendim. Teşekkürler Transit Tribune!

    Reply ↓

  34. İğneada, Karadeniz’in doğal güzellikleriyle ünlü bir tatil beldesidir. İğneada.net’te, konaklama seçenekleri, doğal plajlar, ormanlar, yürüyüş rotaları ve diğer aktiviteler hakkında bilgi edinebilirsiniz. Doğanın kalbinde, huzurlu ve keyifli bir tatil deneyimi için İğneada’yı keşfedin.

    Reply ↓

  36. By definition, a private company that offers specialized search engine optimization services is an SEO agency (SEO). Through a variety of strategies and tactics, every SEO company aims to assist its clients with their online visibility and rankings in search engine results pages (SERPs) thus boosting their sales and increasing revenues.

    Simply put, an SEO company gives its clients the information they need about what customers are looking for, their preferences, and their locations to build websites that deliver the appropriate information at the appropriate time.

    There are some services that an SEO agency offers:

    Finding relevant keywords and optimizing website content and structure to raise rankings for those keywords
    On-page optimization: optimizing various on-page elements of a website such as title tags, meta descriptions, headers, images, and internal linking.
    Off-page optimization involves creating credible, high-quality backlinks to a website to increase its authority and rankings.
    Technical SEO: optimizing a website’s speed, mobile friendliness, site architecture, and other technical aspects that affect search engine rankings
    Content creation: the process of producing excellent, interesting, and pertinent content that draws users to websites, keeps them there, and helps with SEO.

    http://www.vallettasoft.com

    Reply ↓

  37. Reading with us was a real pleasure. It was definitely a satisfying experience. You have saved your site to browse the latest information on your site. It is a must-browse site.

    Reply ↓

  38. It’s amazing to know that you are such a talented writer. The most innovative ideas come from real life experiences. I am sure I will see results within the next few days. These are some suggestions. It’s worth a try.

    Reply ↓

  46. طیف قیمت عطر زنانه بسته به برند، نوع رایحه، فروشگاه و اندازه بطری آن می تواند بسیار گسترده باشد. در کل قیمت عطر و ادکلن زنانه اصل برای یک بطری کوچک، بین 10 تا 20 دلار و برای عطرهای زنانه لاکچری به چند صد دلار نیز می رسد، مثلا عطر شنل به عنوان لاکچری ترین و گران ترین پرفیوم زنانه، بین 5 تا 16 میلیون تومان قیمت دارد.
    قیمت ادکلن زنانه

    Reply ↓

Leave a Reply

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