daks
Posts: 153
Joined: Wed Oct 31, 2001 12:08 am

Question About The Low Fares Airlines

Fri Nov 15, 2002 6:25 pm

I know a lot of people here dont really like the way the low fare airlines operate but I was just wondering how they do it , how can the likes of Ryanair and Easyjet offer such low fares and still post such big profits ??
 
lmml 14/32
Posts: 2358
Joined: Tue Jan 30, 2001 2:27 am

RE: Question About The Low Fares Airlines

Fri Nov 15, 2002 6:41 pm

They fly one aircraft type
Fly their crews for multiple sectors and long days in Jack-of-all-trades fashion
Fly to small out of the way airports where charges are low or even actually get paid to fly there
Fly ticketless on line with real-time charges and give you no rights whatsoever in case of delay/cancellation.
Have no onboard service but sell stuff at high prices.
Target a market that will otherwise not travel at all.

These are just some ideas. There is a good book called simply "No Frills" which exposes these airlines for what they are.
 
jwenting
Posts: 9973
Joined: Mon Apr 23, 2001 10:12 pm

RE: Question About The Low Fares Airlines

Fri Nov 15, 2002 6:43 pm

high loadfactors.
Where the regulars often have 20-30% empty seats, having 10% empty seats is rare on a lowcost.
If there are more empty seats they just cancel the flight for 'technical problems' and reschedule the passengers without refund or anything (as per the terms of the sale).

low operating cost.
Less flight attendants per aircraft. Most large airlines have more than the legal minimum, lowcosts do not.
No food or free drinks on board. Thus lower cost of service and you need less fuel (because lower weight).
Often lower luggage allowance. Again this lowers the fuelbill.

More seats per aircraft.
Coupled with less luggage per seat, this means you can carry more passengers on the same flight using the same fuel.

(often) lower salaries for the staff.

fleet commonality.
Need less different spares in stock, and less differently trained maintenance and flightcrew.
If you fly 10 types you need more spare crews with the same number of aircraft because most won't be current on all those types.
It also helps if you can buy big (Southwest will get a lower unit price on 737s when buying 100 than say KLM when buying 20. This is of course just a random example).

Fly into smaller airports.
Some lowcosts fly into small airports (more or less) close to the cities instead of the major airports.
Landing and parking/handling fees here are lower.
I wish I were flying
 
Nightfly
Posts: 212
Joined: Mon Nov 13, 2000 6:24 am

RE: Question About The Low Fares Airlines

Fri Nov 15, 2002 6:59 pm

- They sell tickets only by internet or telephone to dump charges of staff.
- Prices rise with the loadfactor. The cheapest price is only on 30% of the seats (an advance for people who book early enough).

best regards,
nightfly
 
Sabena 690
Posts: 6065
Joined: Sat Feb 02, 2002 12:48 am

RE: Question About The Low Fares Airlines

Fri Nov 15, 2002 7:28 pm

I also have a question about low cost airlines:

Do they overbook a flight, like other carriers do?

Regards,
Frederic
 
Guest

RE: Question About The Low Fares Airlines

Fri Nov 15, 2002 10:43 pm

US lowcosts are different than EU lowcosts.

-US don't pack them in as tightly as possible
-They don't sell food, but offer small snacks for free like the major US airlines(no meals though).
-fly to large and small airports(LGA, PHL, LAX, SEA, or smaller ones like OAK and SJC instead of SFO).
-Delay/Cancellation may be a little more stingy compared to the major airlines(depending on the LCC), but laxer restrictions are also more common(FL charges $50 to change flight, B6 $25, and WN only fare difference compared to $100 at most majors).
 
Guest

RE: Question About The Low Fares Airlines

Fri Nov 15, 2002 10:52 pm

Another good book (perhaps more academic than Simon Calder's book) is "Cleared for take-off" by Thomas Lawton.

Sabena, I only know that Ryanair don't overbook. I don't know what Go, buzz etc. policies are.

Rgds
 
teva
Posts: 1764
Joined: Thu Feb 01, 2001 12:31 am

RE: Question About The Low Fares Airlines

Sat Nov 16, 2002 12:15 am

In Europe, they fly pretty short legs, and the ground time is very short.
By this way, they can make one or two extra rotation per day.
Since they have no catering (the only trolley with some sandwiches and the drinks is changed only every 2 or 3 rotations), it is easy to reduce the ground time.
To save additional time and money, the cabin is cleaned by the crew.

Teva
Ecoute les orgues, Elles jouent pour toi...C'est le requiem pour un con
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: Question About The Low Fares Airlines

Sat Nov 16, 2002 12:50 am

Southwest load factors are LOW.
Most LCCs (the ones that survive!)make good use of yield management though.

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