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RE: Definition Of 'Low Cost Carrier'  
User currently offlinepeterinlisbon From Portugal, joined Jan 2006, 226 posts, RR: 0
Posted (11 months 3 weeks 6 days 19 hours ago) and read 1098 times:

Definition of low cost airline: No room to fart, but a quarter of the price!

6 replies: All unread, jump to last
 
User currently offlineElPistolero From Canada, joined Feb 2012, 614 posts, RR: 2
Reply 1, posted (11 months 3 weeks 6 days 19 hours ago) and read 1069 times:

Quoting r2rho (Reply 5):
The traditional definition of LCC is obsolete, the lines are becoming increasingly blurred and the formerly clear distinction between legacy/LCCs is no longer valid. The term LCC leads to a lot of misinterpretation when applied to the current airline environment. We need to classify airlines by cost base and service/frills offered; fare levels only to a very limited extent. High fares or cost bases do not necessarily imply high frills & service levels anymore, nor viceversa.
Quoting brilondon (Reply 14):
There really is no true definition of a "Low cost carrier" (LCC). WS was/is considered a low cost carrier, but their fares are quite pricey.

From an industry perspective, an LCC is easy enough to define - ie - not burened with legacy costs (pensions, union requirements etc).

From a consumer perspective (at least in N. America), that distinction is all but gone. As pointed out by other, prices have nothing to do with service levels.

All of N. America's 'legacy' airlines - AA, AC, CO, DL, UA, US offer what one would consider LCC products in domestic Y. In fact, airlines like UA, AA are indistinguishable from FR (apart from the fares). AC and CO at least offer some kind of IFE on some of their aircraft.

User currently offlineBERFlyer From Germany, joined Jul 2008, 26 posts, RR: 0
Reply 2, posted (11 months 3 weeks 6 days 19 hours ago) and read 1098 times:

Just a reminder: the original term "low cost airline" was minted in the late 80's as an industrie standard for airlines which operational costs on a per seat mile basis where at least 33% lower then the industrie average index. It had nothing to do with "low costs" for passengers! It was a measurement for "low unit production costs".

User currently offlineRheinbote From Germany, joined May 2006, 1956 posts, RR: 52
Reply 3, posted (11 months 3 weeks 6 days 18 hours ago) and read 1039 times:

A low cost carrier is a profitable low fare carrier  

Seriously, there was a number of carriers that branded themselves "low cost" carriers, but in fact they never had low unit cost at all, just low fares. Moneyburners like Snowflake, Ted, Go and what have/had you.

User currently offlinekl911 From Ireland, joined Jul 2003, 4974 posts, RR: 14
Reply 4, posted (11 months 3 weeks 6 days 17 hours ago) and read 1012 times:

As for next weekend and the wekend after a return Budapest - Milan ( Bergamo, but thats even closer to Milan then Malpensa, nonstop bus to citycenter for 5 euro. ) would cost 6,39 euro with Ryanair. Incl online checkin and taxes that is. Excl luggage, but 10kg handluggage is ok.

I call that a true LCC. Twice a year we fly Budapest - Madrid - Lanzarote for never more then 90 euro all incl.
We can better use Low fares airline and Low cost airline since a lot of LCC's are not cheap at all anymore, like Easyjet and Wizzair.


" The European consumer would crawl naked over broken glass to get low fares." Michael O'Leary
User currently offlinebond007 From United States of America, joined Mar 2005, 5098 posts, RR: 9
Reply 5, posted (11 months 3 weeks 6 days 17 hours ago) and read 999 times:

The term is meaningless now, and was even questionable when it was first used. It obviously was initially used to describe airlines with low operating costs ... nothing to do with fares. But, over the years the term LCC has been used to describe any airline with low fares, no-frills, perhaps single aircraft type ... etc., regardless of costs.

Pretty useless definition now.


Jimbo


I'd rather be on the ground wishing I was in the air, than in the air wishing I was on the ground!
User currently offlineGT4EZY From United Kingdom, joined Dec 2007, 1724 posts, RR: 4
Reply 6, posted (11 months 3 weeks 5 days 17 hours ago) and read 784 times:

I think those who cite that the term LCC has become increasingly blurred, are right.

Not everything definitively fits the definition. Whilst labour costs generally speaking are lower, there are certain roles within some airlines that don't fit that very general definition. For instance, when I worked at a full service carrier I earnt 5K less than I did when i moved over to an LCC. But still my counterparts at BA (obviously a legacy) earnt more. However, the new BA mixed fleet contract for cabin crew is rubbish. Easyjet and Ryanair crews are probably amongst the biggest earners when it comes to current cabin crew contracts in the UK. You wouldn't get me working for Ryanair but it is an example of an ever blurred situation.


Proud to fly from Manchester!
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