Preview

Is Low Cost Carriers Safe

Good Essays
Open Document
Open Document
868 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Is Low Cost Carriers Safe
Introduction
Budget airlines, as you would guess from the name, offer inexpensive tickets -- sometimes as low as $50 for a one-way ticket. They manage this by cutting their own operating costs. How do they cut costs? There are many ways an airline can trim operating expenses, but budget airlines are most well-known for cutting back on passenger luxuries, or making passengers pay for luxuries à la carte.
What's behind the success (and sometimes failure) of budget airlines? Do they cut corners on safety? What is it like to fly on a budget airline? In this article, we're going to take a hard look at airline economics and find out how budget carriers stay in the black.

Cost factors independent of safety
One of the ways that airlines can reduce their costs is by buying fuel at the right time. If they buy kerosene when it is cheap they may be able to save millions of dollars. Another way of cutting expenses is to use only one kind of airplane. This saves money on maintenance, repairs and training pilots.
Many budget airlines chose smaller airports to take off and land. A big airport like New York JFK or London Heathrow charges airlines higher fees. Low cost carriers like Ryan Air choose to take their passengers to London Stansted instead of Heathrow. In some cases airlines choose airports that lie between two bigger cities.
Airlines do many other things to cut costs. Many offer only one class of seats. They don't have a business class. Some of them do not reserve seats, so passengers can sit wherever they want. They also save on the number of crew members. A lot of money can be saved by selling tickets on their own website instead of through a travel agent. Many airlines try to stay on the ground as little as possible. After landing, the plane is refueled and takes off a short time later.
Many budget airlines only offer the real flight. You have to pay for onboard food and drinks. Recently Ryan Air has thought about even charging a toilet fee for its passengers.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Mkt/571 Week1

    • 646 Words
    • 3 Pages

    Classic Airlines is the fifth largest airline company in the world. Similarly to the competitors it is suffering from high fuel costs, resulting in lower profits. Many companies dropped number of flights (with the net result of raising passenger load factors and efficiency on remaining flights), raised prices, developed very large revenue streams from checked baggage fees and other charges, and kept very tight lid on all controllable expenses (University of Phoenix Library, 2013). This way the airline companies minimized the expenses and raised the revenue.…

    • 646 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Apply Porter to Easy Jet

    • 599 Words
    • 3 Pages

    In the airline business, particularly on long haul routes, price is only one competitive factor – quality of service and added value both differentiate the products strongly.…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Cost controlling is very important in the airline industry. Southwest is very good at controlling their costs. They offer a no frills service for people who want to get to their destination for as little as possible, and are not concerned about the bells and whistles like in-flight movies. Southwest also realized that when their planes are on the ground, they aren 't making money. They decided to keep their planes in the air as much as possible and have worked hard to keep a low turnaround time. They manage to unload passengers and load new passengers for the next flight within twenty minutes, which is shorter than the industry average. Southwest also uses only one kind of plane, the Boeing 737, in order to reduce costs of parts…

    • 1274 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Southwest Airlines, Jetblue, and Spirit have become very competitive over the years. During the recession, they all provide low cost flights which include point to point flights, no seat assignments, no interlining, etc. This was to ensure everyone who needed/ wanted to fly had to option of flying in a cost effective way. Spirit Airlines has adopted the name “A-La-Carte due to their pricing. They offer options which include just going from point A to point B and if you require more which could include luggage, beverages, food, particular seating, etc., there is a price added to your flight fare depending on which option you choose. This is a great advantage for customers who just require a quick trip to and from their destination. “We know…

    • 175 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Airline Ticket Prices

    • 899 Words
    • 3 Pages

    An airline’s ticket price is determined by several factors to include time of day a consumer wishes to travel, day of the week such as Tuesday’s and Thursday’s are usually the most affordable days to travel, popular versus non-popular destinations, first class costs more than general class, cost of fuel, competition from other airlines, special factors such as discounts for military, government or corporate personnel, (How Stuff Works, n.d.) Airlines are constantly analyzing how much consumers are willing to pay and pushing consumers to pay more.…

    • 899 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Southwest’s primary strategy is to minimize its own operating costs so that it can then offer the lowest possible fares to its customers. It is able to accomplish this by scheduling frequent, short point-to-point flights out of underutilized airports without a central hub. Its service is very straightforward, without pre-assigned seating or meal service, and one simple pricing structure. Southwest only uses fuel efficient 737s, which also allows them to save on maintenance and training costs. All these efforts have proven successful, as Southwest has managed to achieve the lowest operating cost structure in the industry.…

    • 663 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Strategic Implementation

    • 1809 Words
    • 8 Pages

    Spirit Airlines is universally known for its ultra-low-cost, low-fare airline services that provide affordable travel opportunities throughout the United States, the Caribbean and Latin America (Spirit Airlines, 2012). Maintaining a strategically low-cost structure directly aligns with Spirit Airline’s target market, which allows the company to offer low priced basic services combined with a range of optional services for additional fees (Spirit Airline, 2012). The airline has earned a reputation for delivering cost effective fares and reliable on-time service with a no frills. In order to realize maximum growth, enhancements to the existing low cost strategy must be implemented to create a greater advantage in the market.…

    • 1809 Words
    • 8 Pages
    Better Essays
  • Good Essays

    The U.S. Airline Industry

    • 1205 Words
    • 4 Pages

    Cost structure of an airline’s operations – The costs of operations for an airline are a limit to how low airfares can be. Costs include maintenance, fuel, labor, fees and lease payments for operating in airports. Those airlines that are able to control costs can attract customers with lower fares and can improve overall profitability.…

    • 1205 Words
    • 4 Pages
    Good Essays
  • Good Essays

    In addition to the major influences on costs of production associated with Delta, economies of scale are also relevant to this firm. Economies of scale operate to the left of Q* or the minimum efficient scale of operations according to class lecture notes. So it is in firms best interest to expand and operate at a more efficient level. Delta is a Legacy Airline; because Delta is one of the larger airlines Delta’s costs are expensive in terms of operation. According to lecture notes from class, economies of scale are characterized by the specialization and division of labor, technological or financial factors. Economies of scale occur when the long-run average total cost declines as output increases.…

    • 473 Words
    • 2 Pages
    Good Essays
  • Better Essays

    As the overhead cost for airlines has become higher over the last decade with rising fuel costs and fees, the cost is obviously transferred to the customer, just as with any other form of business. For example, in restaurants, the rising costs have lead to higher prices on the menu. In general, inflation has rapidly increased in most every industry, passing the cost to the consumer. However, airline travel is one service that is highly targeted as being unfair and unbalanced in our world of hard economic times. Many customers feel that the airlines have raised prices and kept fees in place even while fuel prices have lowered some.…

    • 1113 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    In the last couple years airplane tickets have skyrocketed. The common question is: Why do airplane tickets fluctuate so much? And there are actually lots of reasons, such as oil prices, supply and demand, taxes, and more. There are ways to lower prices for tickets, but overall, they are very expensive, and I think that they should be less.…

    • 338 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Math 208 project

    • 735 Words
    • 3 Pages

    In order for an airline company to be profitable, it has to differentiate itself from others by focusing on customers’ comfort and safety. That being said, an airline cannot satisfy everyone as well as it cannot accommodate everyone. It has to find the best strategy to maximize the number of passengers without compromising the comfort or safety levels.…

    • 735 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Jet Blue Case Study

    • 1199 Words
    • 5 Pages

    JetBlue Airways exists to provide superior service in every aspect of our customer’s air travel experience (JetBlue Airways).…

    • 1199 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Easyjet Assignment

    • 1755 Words
    • 5 Pages

    Along with the development of airline industry and the increase of air traveling demand, low cost flights become more and more common attracting much effort to research pricing strategies in this field in order to reach improvement opportunities. There are some different methods about the way carriers hold their flights. Studying this issue can help managers understand clearly how the prices of low cost airlines in fact could be opposed with normal ones, so they can adjust their oriented goal to achieve good performance…

    • 1755 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Additionally, the luxury carriers face stiff price competition from the low priced, budget airlines. As a result of this they need to constantly deliver premium service in order to successfully compete against the low-cost airlines.…

    • 1438 Words
    • 6 Pages
    Good Essays