Did people want to know how our low-cost airlines so cheap?
Well, it’s another complicated answer but an interesting on. For simplicity and to keep our European fans from feeling left out, we will focus on that European model of low-cost airlines.
While there are low-cost airlines in North America, South Africa, India, Asia, and plenty of asking other places, budget airlines were first successful in Europe and their swear they are still outstanding these days. The magnitude to which airlines like Ryanair and Easyjet decrease the cost in Europe is also much more notable.
Low-cost airlines in the US, which might be ten or twenty percent less costly than their competitors while in Europe, a fare on a budget airline might only cost half or third of what you would pay to a regular airline.
You can regularly find 23-hour flights on a budget airline for less than €10. So how do they work?
Well, unsurprisingly, budget airlines mainly take every expensive part of the flight and make them less expensive. The most important thing an airline company needs is the fleet, and it is possible to spend less on airplanes.
In the months and years following 9/11, the rise of our travel stalled, and most airlines were simply fighting to survive. You can read the following article to know more about Airbus a380 and Boeing 787 Dreamliner.
Meanwhile, Ryanair was thriving and placed a large order of 151 737’s from Boeing unbelievably low prices. A circumstance like that luckily is not frequent, but low-cost airlines can place big orders at any time, which helps them to get a bulk discount.
It might seem weird that a low-cost airline would buy brand new airplanes, but the latest planes are the most efficient who are saves well. The fuel efficiency of new aircraft counterbalances the higher price, so EasyJet, Jetblue, Ryanair, and spirit airlines all have more adolescent fleets than any significant airlines.
Low-cost airlines will also typically have only one type of plane. Ryanair operators 737‘s and EasyJet only operates that a320 family.
Having a single type of aircraft’s fleet means that pilots, flight attendants, mechanics, and ground staff only need to be trained on that particular type of aircraft, which saves an enormous amount of time and money. Within the planes, budget airlines will Often you would avoid luxuries to keep expenses down.
Ryanair seats, for example, don’t recline because that increases the initial purchase price for seats and also requires more maintenance. The seat design also saves time for flight attendants since there are no seatback pockets to clean between flights.
Flight attendants on budget airlines are often at the beginning of their carriers and receive little training. Of course, they will get the required safety training but only minimal hospitality training. They will also often serve multiple roles. While on the ground, some of the flight attendants might go to the gate and check tickets while others clean the airplane.
Though this, airline eliminates three or four positions that they regularly would pay for. Onboard, flight attendants R of coarse responsible for food and drinks which are rarely free.
Onboard service can be an excellent way for the airline to make money. Many budget airlines also make duty free sales, and Ryanair even sells lottery tickets. Let’s talk about airports.
You are never going to see Ryanair fly to London Heathrow or parish Charles de Gaulle because those airports are expensive. There are only a set amounts of all flights per day that can operate out of them, so supply And demand dictate that landing fees are high and slots are regulated.
Instead, Ryanair flies to Gatwick, Stansted, or Luton in London or Beauvais in Paris, which by the way, is an eight-minute bus ride away from Paris, is not even technically in the same region of Paris, and has a website.
In a lot of cases, Ryanair or other budget airlines are the only or one of a few airlines flying out of an airport, which gives them substantial negotiating power.
Often they will take a small regional airport area from a city and re-brand it as eat another city airport. They can ask for lower Landing and takeoff prices and, if the airport does not comply, just leave, and the airport will permanently cease to exist.
If there is not a viable cheap airport available around the City Port, budget airlines can also fly two regular airports at less busy times when landing fees and the chance of delay might be lower. Now let’s get into the nitty-gritty the small details. The planes of budget airlines tend to operate all day nonstop.
For example, in one day, this Ryanair plane went from Brussels to Copenhagen, Copenhagen to Brussels, Brussels to Prague, Prague to Brussels, Brussels to Nimes, Nimes to Brussels, Brussels to Treviso, then finally Treviso to Brussels.
Budget airlines will schedule only 30 to 45 minutes between the landing of one flight to the takeoff of another, Which often leads to delays and leaves very little time to clean the aircraft. This does, however, mean that airplane is always making money and passengers are not paying for that time it is sitting around.
Ever wonder why Southwest does not happen reserved seating? Well, by having a first come first serve system for seats, people almost always show up to get early and line up in an orderly line.
This way, less time is spent on the ground boarding and more time in the flying. Another principle of Budget airlines is the point to point model. Most traditional airlines have hubs where most or all of their flights go in and out of.
British airlines have London, and Air France has Paris, KLM has Amsterdam to get to most places on these their airlines, you have to connect through their hubs. Budget airlines, on the other hand, try to have a lot of destinations from everywhere.
That does mean, however, that many destinations are served only a few times per week. The cheapest budget airlines don’t even allow for connections between their flights allowing connections at cost because then you have to pay for ground crews to transfer bags, create a more complicated ticketing system, and pay to rebook a passenger If a delay in their first flight makes them miss their second. Speaking of ticketing, there is often no way to get a ticket from a real person from on budget airlines.
Ryanair charges 45 pounds if you fail to print your boarding pass at home, and EasyJet and some other carriers have almost all their check-in handled by machines. This once again cuts down on personnel costs. At the airport, these budget airlines won’t bother using jetways because they are expensive.
They will use steps and just have passengers walk across tarmac or take a bus to the plane. Low-cost airlines make a lot of money If done right.
- Easyjet (11.15%),
- Ryanair (24.10%)
- Wizz Air (10.2%)
all have higher profit margins than Lufthansa (4.03%), British Airways (7.09%), and Air France (2.15%).
Many of the traditional airlines have unionized workers with salary agreements that cannot be changed while the budget airlines can hire anyone and train them in a few months. It is also hard for these traditional airlines to grow.
Any route they make has to be one with a lot of pre-existing demand since much of their business comes from business travelers. Since budget airlines are targeted more towards tourists, any destination that Ryanair, for example, opens up in will become a popular destination just because it is possible to go there for cheap.
Some traditional airlines in Europe are opening their budget airlines to get in on this profit. Air France created Transavia, and Lufthansa created euro wings, both of which are losing massive amounts of money. What they seem to forget is that the US went through this budget airline within an airline face a couple of decades ago.
Delta created the song, which failed. Us Airways created Metrojet, which failed. United created Shuttle, which failed then, they went into bankruptcy and decided they should try again and make Ted, which failed.
None of this worked. Traditional airlines cannot get away from their labor agreements, honest business practices, and devotion to their hubs. The reason Ryanair and EasyJet can succeed where others have failed is significant because they are so broad and flexible.
They have hundreds of planes, hundreds of destinations, thousands of employees, and negotiating power that allows them to overpower competitors. In the end, for us consumers, any competition is good competition. Even failing budget airlines will bring down the cost of traditional airlines and allow asked to travel the world for less.