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Category: Business and Industry

Date Submitted: 04/21/2014 06:08 AM

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1. Most low-cost carriers operate aircraft configured with a single passenger class, and most operate just a single type of aircraft. (Reduce the training and maintenance cost.)

2. Aircraft often operate with a minimum set of optional equipment, keeping the weight of the aircraft lower and thus saving fuel.

3. Seats do not recline and do not have rear pockets, to reduce cleaning and maintenance costs.

4. No window shades.

5. Most do not offer reserved seating, hoping to encourage passengers to board early and quickly, thus decreasing turnaround times

6. Some allow priority boarding for an extra fee in lieu of reserved seating, and some also allow only the emergency exit rows to be reserved, again at an extra cost. The emergency exit seats have longer leg room.

7. many low-cost carriers develop one or more bases to maximize destination coverage and defend their market. Many do not operate traditional hubs, but rather focus cities.

8. Airlines often offer a simpler fare scheme

9. luggage is not transferred from one flight to another, even if both flights are with the same airline. This saves costs and is thought to encourage passengers to take direct flights.

10. Low cost carriers generate ancillary revenue from a variety of activities, such as à la carte features and commission-based products. Some airlines may charge a fee for a pillow or blanket or for carry-on baggage. AirAsia for example, generates revenue by courier services and hotels as well as flights.

11. employees work multiple roles

12. using fuel hedging programs to reduce its overall fuel costs

13. Check-in at the gate of luggage requires fees as it requires addition to the weight calculation and last minute baggage handling.

14. Often these airlines offer no refunds or transfers to later flights in the event of missed flights; if the aircraft leaves on time without a passenger who arrived late, the passenger will have to buy a wholly new ticket for...