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parked on the apron at [Ninoy Aquino International Airport].
A low-cost carrier or low-cost airline (also known as a [no frills] or [discounts and allowances] carrier / airline) is an [airline] that offers generally low fares in exchange for eliminating many traditional passenger services. The concept originated in the [United States] before spreading to [Europe] in the early 1990s and subsequently to much of the rest of the world. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. Through popular media the term has since come to define any carrier with low ticket prices and limited services regardless of their operating costs.
Business model
Typical low-cost carrier [business model] practices include:
- a single passenger class
- a single type of [fixed-wing aircraft] (commonly the [Airbus A320] or [Boeing 737]), reducing training and servicing costs
- a minimum set of optional equipment on the aeroplane, often excluding modern conveniences such as [ACARS], further reducing costs of acquisition and maintenance
- a simple fare scheme, such as charging one-way tickets half that of round-trips (typically fares increase as the plane fills up, which rewards early reservations)
- unreserved seating (encouraging passengers to board early and quickly)
- flying to cheaper, less congested secondary [airport]s and flying early in the morning or late in the evening to avoid air traffic delays and take advantage of lower landing fees
- fast turnaround times (allowing maximum utilization of aircraft)
- simplified routes, emphasizing point-to-point transit instead of transfers at hubs (again enhancing aircraft utilization and eliminating disruption due to delayed passengers or luggage missing connecting flights)
- emphasis on direct sales of tickets, especially over the Internet (avoiding fees and commissions paid to [travel agent]s and [Computer reservations system])
- encouraged use and issuance of the [electronic ticket] or ticketless travel
- employees working in multiple roles, for instance flight attendants also cleaning the aircraft or working as gate agents (limiting personnel costs)
- "Free" in-flight catering and other "complimentary" services are eliminated, and replaced by optional paid-for in-flight food and drink (which represent an additional profit source for the airline).
- Aggressive [fuel hedging] programs.
- "Unbundling" of ancillary charges (showing airport fees, taxes as separate charges rather than as part of the advertised fare) to make the "headline fare" appear lower.
Not every low-cost carrier implements all of the above points (for example, some try to differentiate themselves with allocated seating, while others operate more than one aircraft type, still others will have relatively high operating costs but lower fares). Nonetheless these are general characteristics, most of which apply to any given low-cost carrier.
Particular characteristics of the United States market
The principal area of competition tends to be the full-coach or "walk-up" fare. Advance purchase fares tend to be competitive with [major carrier]s but not significantly lower. Most successful LCCs try to offer a modicum of additional benefits, such as better on-time performance or more leg room. [AirTran Airways] and [Spirit Airlines] have been very successful with their low-fare Business Classes, while [Frontier Airlines] and [JetBlue] offer live in-flight television.
History
[image:low.cost.carrier.easyjet.arp.jpg] of UK low cost carrier [easyJet] waiting for take off at [Bristol International Airport]
The first successful low-cost carrier was [Pacific Southwest Airlines] in the [United States], which pioneered the concept when their first flight took place on [May 6], [1949]. Often, this credit has been incorrectly given to [Southwest Airlines] which began service in 1971 and has been profitable every year since 1973. With the advent of aviation [deregulation] the model spread to [Europe] as well, the most notable successes being [Ireland]'s [Ryanair], which began low-fares operations in 1991, and [easyJet], formed in 1995. Low cost carriers developed in [Asia] and [Oceania] from 2000 led by operators such as [Malaysia]'s [AirAsia], and [Australia]'s [Virgin Blue]. The low-cost carrier model is applicable worldwide, although deregulated markets are most suited for its rapid spread. In 2006, new LCCs were announced in [Saudi Arabia] and [Mexico].
Low-cost carriers pose a serious threat to traditional "full service" airlines, since the high cost structure of full-service carriers prevents them from competing effectively on price - the most important factor among most consumers when selecting a carrier. From 2001 to 2003, when the aviation industry was rocked by [terrorism], [war] and [SARS], the large majority of traditional airlines suffered heavy losses while low-cost carriers generally stayed profitable.
Many carriers opted to launch their own no-frills airlines, such as [KLM]'s [Buzz (airline)], [British Airways]' [Go Fly], [Air India]'s Air India-Express and [United Airlines]'s [Ted (airline)], but have found it difficult to avoid cannibalizing their core business. Exceptions to this have been [Bmi (airline)]'s [bmibaby], [germanwings] which is controlled 49% by [Lufthansa] and [Qantas]'s [Jetstar Airways] all of which successfully operate alongside their full-service counterparts.
For holiday destinations, low cost airlines also compete with seat-only charter sales. However, the inflexibility of charters (particularly as regards length of stay) makes them unpopular with many travelers.
The entry of new nations into the [European Union] from [Eastern Europe] and moves towards compliance with EU legislation by those who have not yet joined, has led to an extension of [open skies] arrangements. This has led to the establishment of low-cost routes by existing and new operators such as Hungarian [Wizz Air] which took its first flight on 19th May 2004. From 2004 to 2006 routes have been established into [Bulgaria], [Slovenia], [Poland], [Hungary] and the [Czech Republic]. Low cost airlines are also now starting to fly into [Turkey].
In [Canada], [Air Canada] has found it difficult to compete with new low-cost rivals such as [Westjet], [Canjet], and [Jetsgo] despite its previously dominant position in the market: [Air Canada] entered a period of [bankruptcy] protection in 2003, but emerged from protection in September 2004. Air Canada operated two low-fare subsidiaries, [Air Canada Tango] and [Zip (airline)], but both were discontinued. (Jetsgo itself ceased operations on [March 11] [2005] and Canjet announced that it will discontinued scheduled air services on [September 10], [2006].)
[India]'s first low-cost airline, [Air Deccan] started service on [August 25], [2003]. The airline's fares for the [Delhi]-[Bangalore] route were 30% less than those offered by its rivals such as [Indian Airlines], [Air Sahara] and [Jet Airways] on the same route. The success of Air Deccan has spurred the entry of more than a dozen low-cost airlines in India. Air Deccan now faces stiff competition from other low-cost Indian carriers such as [SpiceJet], [GoAir] and [Paramount Airways]. [IndiGo Airlines] recently placed an order for 100 [Airbus A320]s worth 6 billion [USD] during the [Paris Air Show], the highest by any Asian domestic carrier. After a year of operation, in 2006, [Kingfisher Airlines] changed its business model from low-cost to value airlines.
In [Finland] the competition went in a different direction, as the national carrier [Finnair] lowered prices so that the low-cost competitor [Flying Finn (airline)] was forced to cease its operations. Three months after Flying Finn's bankruptcy, the other operator [Blue1] began flights to three of Flying Finn's most profitable destinations.
In [Norway] the first low cost carrier was [ColorAir] in 1998. Their low prices were matched by competitors [Scandinavian Airlines System] and [Braathens], and [Color Air] folded in 1999. The next low cost carrier, [Norwegian Air Shuttle] (or Norwegian), starting their [Boeing 737] operations in September 2002, provided tougher competition for the merged Norwegian part of SAS and Braathens. Although Norwegian started with domestic routes, today their international operations are larger than their domestic service. By launching nonstop flights from cities like [Stavanger], [Bergen, Norway], [Trondheim] in addition to [Oslo], they soon became very popular. Norwegians are amongst the most frequent fliers in the world, mostly due to the geography of the country but also due to the high level of income.
[Australia]'s first low cost airline was [Compass Airlines (Australia)] which launched operations in 1990 but was short lived. In 2000 [Impulse Airlines] and [Virgin Blue] commenced low cost operations bringing fierce competition to Australian cities. Virgin Blue has become the nation's second largest airline, whilst [Qantas] purchased Impulse and operated it in a '[wet lease]' arrangement before transforming it into its new low cost carrier [Jetstar Airways]. [Qantas] has launched two low cost carriers: JetStar competes with [Virgin Blue] in the Australian domestic market, while [Australian Airlines] operated internationally to Asian destinations. In 2006 Qantas began operating the Australian Airlines operation in a 'wet leasing' arrangement which essentially means Australian Airlines crew and aircraft operate services under the Qantas brand. As at 2006, Qantas intends to continue developing a sole low-cost brand around Jetstar which will include international destinations.
In 1995, [Air New Zealand] established a low-fare subsidiary, [Freedom Air], in response to the commencement of discount trans-[Tasman Sea] services by the upstart [Kiwi Travel International Airlines]. Fierce competition on trans-Tasman routes lead to the collapse of Kiwi Airlines in 1996. Freedom Air continues to provide discount services between Australia and [New Zealand]. Wholly owned Qantas subsidiary [Jetconnect] was set up as a low cost New Zealand arm of Qantas, with Jetconnect operating all New Zealand domestic services and several trans tasman services in a 'wet leasing' arrangement, using the Qantas brand. Qantas has also launched trans-Tasman Jetstar flights .
On [Feb 3] [2003], [Air Arabia] was established on and started operations on October 29, 2003. Air Arabia can be safely said to be the first budget airline in the Middle East region
On [May 5] [2004], Singapore's first low-cost carrier, [Valuair] was launched, prompting dominant carrier [Singapore Airlines] to invest in a new low-cost startup, [Tiger Airways], to beat the competition. Not to be outdone, [Singapore Changi Airport]'s second most dominant carrier, [Qantas Airways], also started its Asian offshoot, [Jetstar Asia Airways] based in [Singapore] and commencing operations on [December 13] [2004]. [Malaysia]'s [AirAsia] made repeated attempts to set up a Singaporean operation, but its insistence in using [Seletar Airport], in addition to other demands to cut airport usage charges, delayed its abilities in gaining the relevant permits from the authorities in Singapore. This set-back may block AirAsia's Singapore expansion ambitions. In July 2005, the owners of Jetstar Asia took over Valuair and are merging the two carriers. In contrast with AirAsia, none of the Singaporean low-cost carriers are yet profitable.
, [Airbus A319] displaying a full-body Nationwide Insurance advertisement.
As the number of low-cost carriers has grown, these airlines have begun to compete with one another in addition to the traditional carriers. In the US, airlines have responded by introducing variations to the model. [US Airways] offers a first class product and airport lounges, for example, while [Frontier Airlines] and [JetBlue Airways] advertises satellite television. Advertiser-supported [Skybus Airlines] will launch from Columbus in 2007. In Europe, the emphasis has remained on reducing costs and no-frills service. In 2004, Ryanair announced proposals to eliminate reclining seats, window blinds, seat headrest covers, and seat pockets from its aircraft.
Some elements of the low-cost model have been subject of criticism by Governments and Regulators, and in the UK in particular the issue of "Unbundling" of ancillary charges by both low-cost carriers and other airlines (showing airport fees, taxes as separate charges rather than as part of the advertised fare) to make the "headline fare" appear lower has resulted in enforcement action. Believing that this amounts to a misleading approach to pricing, the Office of Fare Trading in February 2007 gave all carriers and travel companies three months to include all fixed non-optional costs in their basic advertised prices. Although the full service carriers had complied within the specificed timescales, the low-cost carriers have been less successful in this respect, leading to the prospect of legal action by the OFT.
No-frills long-haul flights
The first airline offering no-frills transatlantic service was [Freddie Laker]'s [Laker Airways], which operated its famous "Skytrain" service between [London] and [New York City] during the late 1970s. The service was suspended after Laker's competitors, [British Airways] and [Pan American World Airways], were able to price Skytrain out of the market.
In 2004 the Irish company [Aer Lingus] lowered its prices to compete with companies such as [Ryanair] and also started offering no-frills [transatlantic flight]s for just above €100. Late in 2004 the Canadian airline [Zoom Airlines] also started selling transatlantic flights between Glasgow, UK; Manchester, UK; and Canada for £89.
It has been suggested that the [Airbus] [A380], able to hold up to 853 passengers in an all Economy layout , would enable true low-cost long-haul service. While the per-seat costs of such an aircraft would be lower than the competition, there are fewer cost savings possible in a long-haul operation and therefore a long-haul low-cost operator would find it harder to differentiate itself from a conventional airline. In particular, low-cost carriers typically fly their aircraft for more hours and flights each day, scheduling the first departure early in the morning and the last arrival late at night. However, long-haul aircraft scheduling is more determined by timezone constraints (e.g. leaving the US East Coast in the evening and arriving in Europe the following morning), and the longer flight times mean there is less scope to increase aircraft utilization by adding one or two more short flights each day.
The industry magazine Airline Business recently analysed the potential for low-cost long-haul service and concluded that a number of Asian carriers are closest to making such a model work. One such airline is Air Asia.
In August 2006, [Zoom Airlines] announced that it was to establish a UK subsidiary, probably based at [Gatwick Airport], to offer low-cost long-haul flights to the [USA] and [India].
On 26 October 2006, [Oasis Hong Kong Airlines] started flying from Hong Kong to [London Gatwick Airport]. It was supposed to fly on 25 October but was delayed for one day because Russia suspended fly-over rights for that flight an hour before the flight's scheduled departure. Tickets for flights between Hong Kong to London can be as low at £75 (approximately US$150) per leg (not including taxes and other charges) for economy class and £470 (approximately US$940) per leg for business class for the same route. Its next planned destination is to [Vancouver], a major city in [Canada], which began service on [28th June], [2007].
Low-cost business only carriers
A recent trend is the formation of new low-cost carriers exclusively targeting the long-haul business market, with aircraft configured for a single class of service, initially on transatlantic routings. Probably best described as "less frills" rather than "no frills", the initial entrants in this market, including [Eos Airlines], [Maxjet Airways], and [Silverjet] are using mid-sized twin jets such as [Boeing 757] and [Boeing 767] to service the lucrative London - US Eastern Seaboard market.
See also
- [List of airlines]
- [List of low-cost airlines]
- [Travel search]
External links
- Low-Cost Carriers - Europe - Research and information on European low-cost carriers
- Budget Bonanza - A flotilla of low-cost airlines is redrawing the economic map of Europe. Article from [Newsweek].
Information Reference: Wikipedia.org
Cheap flights Questions and Answerscheap flights?Q) does anyone know any websites that do cheap flights? we want a cheap return flight from UK to Paphos,Cyprus in august.
A) try flyglobespan they are really cheap i got flights to larnaca for £49 each way you have to check the site daily cos the prices change all the time, as soon as you see a good price book it straight away good luck and enjoy yr hols.......What websites can I get REALLY cheap flights from London to Edinburgh?Q) Ideally we want to fly from Luton but if there is extremely cheap flights from one of the other airports I guess we can go from there.
We plan to fly Saturday 5th April and it's a one way flight needed for 2 people preferably am or lunchtime flight.
A) easyJet fly out of Luton and Stanstead to Edinburgh. The fares vary from day to day, but for the 5th April the cheapest from Luton is coming up at £31.99 each, but this is 21:15 flight. The one nearest lunchtime (dep 14:35) is £49.99 each. (Flights from Stanstead that day are more expensive).how do we get cheap flights to bodrum in Turkey from the midlands?Q) We are struggling to find any cheap flights for a quick trip to Turkey to look at properties there - we only want to be there for a weekend. Good airports for us would be Nottingham, Doncaster, Standsted and maybe Birmigham. Any advice?
A) check out:
http://www.search2u.net/flight.htm
Good luck!What web sites are best to find cheap flights to the US?Q) What web sites are best to find cheap flights from Scotland to the US? Expedia and Opodo are'nt helpful. They only show the big expensive airlines and not the discount ones.
A) skyauction.com
It is able to have amazing deals by selling tickets for soon flights. If you buy something for 2 weeks from now, you can get it for $10! The only catch is that is has to be very soon from now...
Not a scam :o)When is the best time to book cheap flights?Q) I will be holidaying in Spain next July (near Malaga) along with my partner and 1 year old daughter. When would be the best time to book cheap flights? Should I just get the best deal now or wait until nearer the time. Easyjet dont seem to be booking that far in advance yet. We live in Edinburgh. Cheers.
A) Travelocity (and probably some of the other low-fare websites) have a fare watcher if you register with them. It'll email you when the price of tickets between your destinations drops in price.
If you watch the prices for a little while you'll get a good idea what's normal and what's a good deal - but keep in mind sometimes you'll only get that fare for a few hours, so be ready to buy when you see the price drop.what are the best sites/places to get cheap flights to austrailia from the uk?Q) I have a friend in oz who i'm dying to see but I'm not exactly flush with cash so i need to find a site or something with really cheap flights!
A) Aus-travel are very good.Any tips to get really cheap flights, UK to Miami return, over the Christmas period?Q) Any tips to get really cheap or even free flights?
Preferably from Manchester but any UK airport if it's a big saver.
Ideal dates: 19th Dec 07 - return 2nd Jan 08
but I'm very flexible on the dates.
Thanks.
Thanks Phantom but *ouch* !!!
I can get them cheaper than that circa £650 atm.
Was looking at uber cheap ways - something innovative.
A) Returning during that first week in the New Year will ruin any chance of a real saver and departing any later than 19th is a killer too. If you can extend your trip and return on the Monday, you can get flights with US Airways for around £500 return.
Otherwise, the cheapest I can find is £532 round-trip from Manchester to MIA. However you would have to connect in London and then again in Washington. That is with United
The return is easier, MIA to Frankfurt and then onto Manchester with Lufthansa.
However, if you can get down to London (LGW), the flights are much better. For the dates you requested, £512 round-trip. One connection in Charlotte and that is with U.S. airways.
Either way, you still save around £100 per person and you won't find anything much cheaper than that at this time of the year.anyone know where to get cheap flights to Portugal?Q) I'm going there in a couple of weeks and I can't find any really cheap flights. I have travelled to france and spain etc for as little as £40 but can't seem to get anything cheaper than £150 for Portugal.
A) try this web site
http://www.cheapflights.co.uk/flights/Faro/London-Area/Where can I get cheap Flights to Jersey, Channel Islands on the Net?Q) I'm looking to book a flight for myself and daughter (4) to go over and visit my friend in Jersey during the school summer hols. Where's the best place to book cheap flights on the net?
Thanks.
A) http://www.skyscanner.net/gbp/flights/lond/jer/cheapest-flights-per-month-to-jersey-from-london.htmlWhere can i get cheap return flights to cyprus?Q) going sept 2007, need cheap flights.
A) Try FareChase, they search dozens of websites for you, so you dont have to!!!Table './infoservice/infoservice' is marked as crashed and should be repaired
cheap flights?Q) okay so Im planning to go to CA for spring break (from HI) and I was just wondering when it would be best to purchase a ticket? Do prices initially get cheaper as the departure date approaches, or do they get more expensive?
Is there any other advice anyone can give about getting a really cheap flight? (i'm on a very tight budget) thanks!
***
it's just that i've noticed that dates closer to today are wayyy cheaper.
??
A) you should book as far in advance as possible. the reason dates close to today may look cheaper is that this might not be a popular time for that flight. to cut through the deals, you should check out http://www.travelcuse.com to book your trip. the site is an aggregator which means it takes offers from various online sites and shows you the best deals. good luck!Cheap flights between Egypt and South Africa?Q) I want to fly between Egypt and South Africa and was wondering if there are any cheap airlines like the ones they have in Europe (ryanair, easyjet, etc.) I know that the cheap small plane airlines do not usually appear in results when you search for flights in a flight searcher such as kayak etc.
Can anyone who has been to Africa or lives there help me out?
A) www.orbitz.com will show you the cheapest airfare no matter where your departure and destination are.What is the best site to find cheap flights across Canada?Q) Hey there!
I live on the west coast and my family lives in Ontario. What is the best site for finding cheap flights to go visit them?
A) Hi, check out also the http://www.cheaptickets.gr/travel/flights/canada.php for flights to Canada.How do I find cheap flights from London to Dallas, TX over the Christmas Holiday?Q) My boyfriend lives in London and is trying to come to Dallas for Christmas (looking at flying out 23 Dec). Any ideas for finding cheap flights?
A) shop around through different ticket agencies/ airlines. get a AAA membership. order tickets early, theyll go quick. good luck!Where can I find some cheap flights to Brazil?Q) Looking for a cheap flight to Brazil. I checked with AA and it came out to nearly 1,600 dollars. That's way out of my budget. Please check the site you recommend first for flights before throwing a bunch of links at me and make sure that the flights there are cheaper for me, thanks alot.
I live in Santiago, Dominican Republic so I will have to be departing from Aeropuerto Cibao (Cibao/Santiago Airport) I guess...
A) www.WildBeanTravel.com is running a Cash BAck promotion on International Travel. Check out the Rates.What happened to the cheap flights to Mexico?Q) I remember hearing about some flights that were incredibly cheap to Mexico. Does anyone have info about this like price and airline?
A) I think cheap flights went the way of cheap gas.What airlines/websites are best for offering cheap flights from South Korea to other parts of Asia?Q) I want to visit other parts of Asia over the holidays this year, and am struggling to find airlines and websites that offer cheap flights. I'm in South Korea, and I'm particulary interested in the Philippines.
A) Hey dude why don't you try this thing.. http://www.mytafri.com
through this you can select the best and the cheapest deals for your place to anywhere. :)
But you need to donwload it on your desktop though,.,, but its Free and small.
you can even be able to watch the pics and the videos of the related flight thruogh this....
Enjoy you trip :))Is there a website where I can find extremely cheap flights?Q) My girlfriend lives in Alabama and we fly to see eachother frequently. Does anyone know of a website that I can find cheap flights so that this long distance relationship doesn't cost such a fortune?
A) If she's near Birmingham, then she should sign up for "Ding" fares from http://www.southwest.com
Otherwise (without knowing where exactly she needs to travel to from Alabama) I recommend http://www.bookingbuddy.com Add which cities exactly and you might get better answers. I'll check back later to see if you added details, then try to find something better for you.Does anyone know a really good site for cheap flights?Q) its been almost a year since ive moved to Las Vegas and I would love to go back home (Hawaii,Maui) for the summer since ive already experienced the HOT summer here in Vegas.
Since 2 huge airlines have closed down flight have been ridiculous and I need help finding cheap flights.
Someone HELP me.
A) Here's a great place to start:
http://www.FindTravelSpecials.comWhich are the cheap flights between, India and US. How can I know it's cheaper than any other flight?Q) I am going to travel from India to US,
I want to know the cheap flights, how can I find, and how can I know, I am getting the cheap price than any other flight..?
Is there any way to tally..?
What are the good sites for traveling, sites for cheap flight tickets..?
Whether I have to take electronic ticket or paper ticket, because often it is written below ticket price, this price for electronic ticket, how paper ticket different from electronic,
What are the advantages of paper ticket over electronic
What are the good sites for finding room for rent, (cheap rooms)
A) Air India is fairly reasonable.
Check out Kayak.com it will compare flights for multiple websites and if you find a price that's right for you, you can be redirected to that specific site.
Cheap rooms... hostelworld.com offers budget hotels & hostels. Also check out priceline for a cheap hotel room or even orbitz.
No advantages to paper ticket. In fact, typically it's more of a hassle to have a paper ticket rather than an e-ticket. Most airlines these days do not even offer paper tickets.
Another great website is farecast.com. It shows you (with about 70% accuracy based on historical fare trends) whether you should buy your ticket now, or wait until a certain date. It's always worked for me in the past.
Best of luck to you.Table './infoservice/infoservice' is marked as crashed and should be repaired
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