Essay On Low Cost Airline

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A low-cost airline (also known as a no-frills, discount or budget carrier or airline) is an airline that offers generally low fares in exchange for eliminating many traditional passenger services. The aviation industry is in process of deep change and one of the major reasons is the low-cost phenomenon. Many of newly founded airlines are treated as low-cost carriers and the purpose is to show to potential customers the prospect of less expensive air travel. Hence, start-ups do not face many problems while entering the market although not all companies are strictly low-cost some of them are just lower-cost companies. Some, let’s say, traditional companies such as Air France or Austrian Airlines offer to their customers to buy unbooked seats at a relatively cheaper…show more content…
Those companies implement lean management which is based on effectiveness, cost transparency, minimum complexity and the focus is on core tasks. This means that low-cost airlines have flatter hierarchies, no complex operations and little bureaucracy. They can also make some savings by adopting downsizing, this happens when the size of the core workforce is reduced and this can further reduce a firm’s costs because fewer in-flight staff is required owing to a limited on-board service. Other ways for cutting costs are the maximum utilization of permitted working hours of all employees such as cutting holiday allowances. The service organizations must meet three key customer needs to deliver service excellence: security, esteem and justice. Researches identify an array of service quality factors that are important for customers, including: timeliness and convenience, personal attention, reliability and dependability, employee competence and professionalism, empathy, responsiveness, assurance, availability, and tangibles such as physical facilities and equipment and the appearance of the

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