Low Cost Airlines Case Study
Low-cost carriers are also known as the LCCs or budget airlines. The first LCCs business was established at 1971 in the Southwest of US. LCCs had become a common business model in present time. It was stated by (HKEXPRESS n.d.) that LCCs is maintaining a safety flight journey with the lowest air ticket price to travel between destinations, in the arrival time and paid fee for the customer service as you desire. For the reason of LCCs is providing the cut-price airfares sending you to the destination on time. This is the main impact of reasons why most travellers choose LCCs rather than FSCs airline. The phenomenon of low-cost carriers of lower fare makes the impossible dream possible for people to enjoy traveling for the first time in their life. This has become the captivating selling point to the passengers that may not be concerned regarding the in-flight service or luggage …show more content…
Since the LCCs growth rate of world total standard passenger is higher than the FSCs, so LCCs is already replacing FSCs and will worthwhile that LCCs having a a la carte pricing strategy that draws many passengers; interest into considering the acceptable airfare than choosing FSCs. For this reason, the FSCs frequently uses the busy network of airports, but LCCs choosing the non-busy smaller airport that not only can reduce the cost, but also can perform in OTP too. Moreover, LCCs becoming a considerable operational model for FSCs. That the trend of LCCs is undertaking the FSCs operational models. The future growth of LCCs and FSCs as (O’Connell, J. and Williams, G., 2005: 270-271) points out that the passengers are choosing LCCs with their low fares and the passengers selecting FSCs due to the quality product they had to provide that is different than the LCCs. As a result, LCCs might need to upgrade their service so as to compete with FSCs in the coming future that which may affect the survival of FSCs in the aviation
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