Low-cost carrier
To make up for revenue lost in decreased ticket prices, the airline may charge extra fees, such as for carry-on baggage.These products include preferred or assigned seating, catering, differentiated premium cabins, satellite or ground-based Wi-Fi internet, and in-flight audio and video entertainment.Although buying new aircraft is usually more expensive than second-hand, new planes are cheaper to operate in the long run since they are extremely efficient in terms of fuel, training, maintenance, and crew costs per passenger.Low-cost carriers often have a sparse schedule with one flight per day and route, so it would be hard to find an alternative for a missed connection.Low-cost carriers generate ancillary revenue from a variety of activities, such as à la carte features and commission-based products.Where permissible, some airlines have a disinclination to handle Special Service passengers, for instance by placing a higher age limit on unaccompanied minors[6] than full-service carriers.[7] When most countries had national monopolies, crews could negotiate pay raises and good pension benefits (something that costs money for the airlines only in the long term).The number of crew members follow international conventions that require one flight attendant per 50 passenger seats and two pilots.Carriers hire pilots through third-party agencies based in low-tax countries without benefits for sick pay, pensions or health insurance.The pricing policy of the low-cost carriers is usually very dynamic as befits their business model, with frequent discounts and tickets in promotion.While tour and package operators have offered lower-priced, lower-frilled traveling for a large part of modern airline history, not until during the post–Vietnam War era did this business model escalate.PSA's light-hearted atmosphere and efficient operations were a runaway success early on, and inspired a number of low-cost start-ups across the United States, beginning in the mid-1960s.Many young Americans travelled to Europe after graduation, to experience the "old-world culture", and they were more concerned with getting there cheaply than comfortably or even exactly on time.Loftleiðir were not famous for speed or punctuality, but flying with the company became a sort of rite of passage for those young "hippies", one of whom was Bill Clinton, later US President.Among these varieties of low-cost and discount operators were noteworthy starts-ups that managed to get off the ground by using the larger aircraft services of established charter airlines.[23] For the European Commission, the LCCs market share (44.8%) exceeded legacy carriers (42.4%) in 2012: between 2002 and 2017, LCC share of international seat capacity rose from 23% to 57% in the UK, from 10% to 55% in Italy and from 9% to 56% in Spain but have still room for growth in domestic seat-capacity In France with 19% and in Germany with 25% in 2017, compared with 66% in the UK, 48% in Spain and 47% in Italy.In 2004, Irish Aer Lingus maintains a full service on transatlantic flights while it lowered its prices to compete with Ryanair on short haul.In 2005, Emirates' Tim Clark viewed long-haul low-cost as inevitable, flights could be operated on 760 seats all-economy Airbus A380s, or 870 for an hypothetical A380 stretch.In late 2006, others followed from Sydney, Melbourne and Brisbane, to popular tourist destinations within 10 hours like Honolulu, Japan, Vietnam, Thailand and Malaysia.In April 2006, the industry magazine Airline Business analysed the potential for low-cost long-haul service and concluded that a number of Asian carriers, including AirAsia, were closest to making such a model work.[32] It served direct routes from the United States (Los Angeles, Fort Lauderdale, New York City, Oakland-San Francisco, Boston and Orlando) into Scandinavia (Oslo, Stockholm, Copenhagen).[35] Former American Airlines CEO Bob Crandall thinks the legacy carriers will force Long-haul LCCS to lose too much money and will continue to dominate.Probably best described as "fewer frills" rather than "no frills", the initial entrants in this market utilized second-hand, mid-sized, twin jets, such as Boeing 757 and Boeing 767, in an attempt to service the lucrative London-US Eastern Seaboard market: Some elements of the low-cost model have been subject to criticism by governments and regulators; and in the UK in particular, the issue of "unbundling" of ancillary charges by both low-cost carriers and other airlines (showing airport fees or taxes as separate charges rather than as part of the advertised fare) to make the "headline fare" appear lower has resulted in enforcement action.Examples of this are Hahn, Weeze and Girona airports—which low-cost airlines advertise as the destinations for Frankfurt, Düsseldorf, and Barcelona, respectively—even though these airports are 50 to 90 kilometres away.
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