Preview

Low Cost Carriers Paper

Powerful Essays
Open Document
Open Document
2554 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Low Cost Carriers Paper
P4
Describe the legal requirements of airfield operations

M2
Explain the implications of the legal requirements of airfield operations

Student’s name: Blessly Ortiz
Assessor’s name: Rami El Samra

Introduction:

Low-cost carriers are no-frills airlines that offer cheap ticket fares to passengers who would like to fly at a minimal cost. Many low-cost carriers start to enter the aviation market which became one of the struggles to all major airlines that have already existed years back. Through the years, these types or airlines begin to expand and grow in the aviation industry which had affected all other organizations and airlines involved with the industry.

In this written report, I would briefly describe Low-cost carriers, including how they have entered the industry, how they operate, the legal requirements, competitions, example of these types of airlines, etc.

Low-cost Carriers

Low-cost carriers are also known as no-frills airlines. They require their customers to purchase tickets on a cheap price. The services offered by these airlines are very minimal, unlike other full-serviced airline does.

Low-cost carriers began with Southwest Airlines. It is one of the well-known successful airlines in the industry which is based in Dallas, Texas. Right now, they hold the title of being the world’s largest low-cost airline. They started flying short haul flights since 1971 and they are the first airline to sell cheap tickets to the passengers by removing additional services that other airlines provide and also the first to have frequent flyer programs. Southwest began to expand more after the Aircraft Deregulation Act of 1978. This made all airlines in the US free on deciding on their flight routes and the prices that they would charge for these flights. The strategies that Southwest Airlines have and the way they operate each of their flights, inspired all other business organizations to enter the aviation market as a low cost



References: http://en.wikipedia.org/wiki/Aircraft_noise http://en.wikipedia.org/wiki/Airline_deregulation http://markets.ft.com/research/Markets/Tearsheets/Summary?s=RY4B%3AISE http://markets.ft.com/research/Markets/Tearsheets/Summary?s=EZJ%3ALSE http://markets.ft.com/research/Markets/Tearsheets/Summary?s=FLYB%3ALSE http://www.aci.aero/aci/aci/file/2011%20Events/Statistics_and_Forecasting_Workshop/TEYSSIER_Narjess_Presentation_2nd%20part.pdf http://en.wikipedia.org/wiki/Low-cost_carrier http://en.wikipedia.org/wiki/Southwest_Airlines http://en.wikipedia.org/wiki/Air_Arabia http://drivethroughairport.wordpress.com/design-1-0-2/

You May Also Find These Documents Helpful

  • Better Essays

    Southwest airlines was founded in Texas in 1971 as a small, regional intra-state carrier. They chose to service the Golden Triangle of Houston, Dallas, and San Antonio. By staying within Texan borders, they could avoid federal regulations. They used Boeing 747 planes in their fleet. Since their inception, they have been striving to become the leading low-cost carrier in the United States. They have successfully accomplished this. The company has remained profitable despite the setbacks caused to other airlines in the industry following the 9/1/1 attacks and the recession of 2008/2009. This airline remained afloat during those troubled times, even when many other airlines folded or filed bankruptcy under the economic pressure.…

    • 1219 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Southwest Airlines is the industry leader in low cost airfare. They began its operation in 1971 with three Texas based routes and began interstate routes in 1978. When Southwest entered the market in 1971 they employed a market penetration pricing approach. They wanted to provide the best service for the lowest possible price. They saw that if they cut out certain unnecessary benefits they could lower their ticket price to a level far below that of the competition. They do not have in flight movies, meals, or first class sections. This strategy has been very cost effective and Southwest passes the savings on to the customer. They chose to focus on pleasure travelers and low-income travelers opposed to business travelers. This allowed them to take advantage of a market, which was often ignored by other airlines.…

    • 1274 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Ryanair SWOT

    • 1328 Words
    • 6 Pages

    According to safaribooksonline.com/book/sales-and-marketing, operating as a low-cost enterprise can be a strength for companies, as it may incentivise an increase in demand for a particular product or service, in relation to its competitors. Low cost providers are a popular choice for financially conscious consumers who do not have any/little loyalty towards the product/service in question, or for consumers who wish to obtain a product/service at the lowest available price. For Ryanair, being a low cost company has been hugely beneficial, as they have almost entirely built their current reputation on being a low-cost airline. At present, Ryanair is the lowest costing airline in Europe, one third lower than its nearest rival, easyJet.…

    • 1328 Words
    • 6 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
  • Powerful Essays

    Jet Blue Case Analsis

    • 4881 Words
    • 20 Pages

    JetBlue Airways Corporation has established itself as a low-fare passenger airline with a differentiated product and a high-quality customer service. They focus on serving underserved markets and large metropolitan areas that have high average fares. They offer both short-haul and long-haul routes that are point-to-point rather than the 'hub and spoke" route system that has been adopted by most major U.S. airlines.…

    • 4881 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    By the 1980’s Southwest’s cost structure made it a force for other airlines to reckon with because it could charge much lower airfare than the rest. The lower cost structure derived itself from Southwest’s strategy of taking the concept of an airline and reducing it to the minimum bare bones, “it gets me from point A to B cheaply and efficiently” service. This pricing strategy allowed it to be aggressive and take large portions of market share away from its competitors. It was so successful there is a term called “The Southwest Effect”, whenever Southwest would come to a new port other firms had to lower airfare, tourist traffic would increase and an economic mini boom would ensue. Southwest has not only succeeded in being the market leader of airline transportation, their prices are such that they compete with land transportation as well.…

    • 1172 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Since its very first round of commercial flights in the summer of June 1971; Southwest was initially founded on the basis as a “low-cost” provider without compromising quality of service.. Its popular low-fares made air travel more affordable that captured an underserved demographic proportion, especially during the economic “melt-down” of 2008 (Gamble & Thompson, 2008).…

    • 1001 Words
    • 5 Pages
    Better 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

    Southwest Airlines Case

    • 3607 Words
    • 15 Pages

    Southwest airlines began in 1967 as a low-cost, low-fare, customer-friendly air service shuttling passengers between San Antonio, Dallas and Houston, Texas. Founded by Rollin King and Herb Kelleher, Southwest moved from a small commuter transport of 18 round trip flights within Texas to a bustling market share leader providing more domestic flights than any other airline within the industry. Within two years of its first flight the airline was able to report profits in a trend that has continued since 1973, despite industry downturns, economic recessions and intense rivalry attacks. No longer the quirky underdog, Southwest has established itself as the low-fare, low-cost industry leader.…

    • 3607 Words
    • 15 Pages
    Good Essays
  • Powerful Essays

    Southwest Airlines

    • 1554 Words
    • 7 Pages

    Southwest continues to be the least expensive airline in the industry, as competition cannot meet the fares that Southwest is putting out into the market. The competition of competing airlines would incur substantial losses if they stayed competitive with Southwest 's fares. Another key factor is that they have only one type of airplane that is used, Boeing 737 's, which helps lower their costs dramatically for training, maintenance and inventory.…

    • 1554 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Easyjet Assignment

    • 1755 Words
    • 5 Pages

    The demand of air travelling has been increasing quickly leads to the appearance of many low cost carriers which focus on popular class. This had made huge changes in the original service and pricing strategy. Easy-jet is one of the most successful low-fare airlines in the World, which has a noticeable measure of pricing it product. In the airline industry around the world has appeared low cost carriers as major players who have created huge changes in the original service and pricing strategy. Easy-jet is one of the most successful low cost short-haul ones in England as well as European.…

    • 1755 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Southwest Airlines

    • 1025 Words
    • 5 Pages

    The company I chose to research is Southwest airlines. It has been one of the most successful airlines in the US, and with very high customer service ratings. This is very impressive to attain by such a small company in a very tough industry. Southwest is able to achieve such levels by having a clear mission of providing low-fare travel using a point-to-point system and not having a hub-based system. The company operates in relatively shorter routes and only maintains one plane type, its famous Boing 737.…

    • 1025 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Bussiness Plan

    • 7969 Words
    • 32 Pages

    Graf, L., 2005. Incompatibilities of the low-cost and network carrier business models within the same airline grouping. Journal of Air Transport Management, 11(5), 313-327.…

    • 7969 Words
    • 32 Pages
    Powerful Essays
  • Satisfactory Essays

    Headquartered in Miramar, FL, Spirit Airlines, Inc. (Spirit) is an ultra-low-cost, low-fare airline that offers affordable travel to budget-conscious customers. With a route network centered in Fort Lauderdale, FL and an all-Airbus ‘Fit Fleet’ – the youngest of any major U.S. airline – Spirit is positioned to offer more than 400 daily flights to 59 destinations in the United States, Caribbean and Latin America. Spirit is the first of its kind; the pioneer in the fast-growing ultra-low-cost carrier (ULCC) air travel segment. The business model offers budget-conscious travelers an unbundled, stripped down Bare Fare which is then supplemented with ancillary revenue additions for historically bundled…

    • 605 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Skywest Inc

    • 4324 Words
    • 18 Pages

    2. สายการบินแบบ Low Cost Carriers หมายถึงสายการบินที่ดำเนินการภายใต้ low cost business model จะให้บริการเที่ยวบินแบบ point-to-point ซึ่งสายการบินรูปแบบนี้มีสายการบิน Southwest และ JetBlue เป็นสายการบินที่ใหญ่ที่สุด สายการบินแบบ legacy หลายๆ สายการบิน ได้ก่อตั้งสายการบินแบบ Low Cost ขึ้นเพื่อแย่งชิงรายได้ที่สูญเสียให้กับสายการบิน Low Cost ไป ตัวอย่างเช่น สายการบิน United Airlines ได้ก่อตั้ง สายการบิน Low Cost ของตนขึ้นในชื่อ United Ted Airlines และสายการบิน Delta ได้ก่อตั้งสายการบิน Low Cost ของตนขึ้นด้วยเช่นกัน คือ Delta’s Song Airlines…

    • 4324 Words
    • 18 Pages
    Satisfactory Essays

Related Topics