Budget Airlines

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All in all, LCC’s have helped in facilitating inter-regional tourism, which allows tourists to travel to towns and cities to meet their friends and family. Previously, the tourists were unwilling to travel to such destinations, as it was a complicated task of changing flights through airline’s hub.

Therefore, the commencement of low-cost carriers benefitted as it developed cities, tourism and increased employment where the employment rate was very low.

Business travelers, as well as the tourists, are more price-sensitive and thus, budget airlines are trying their level best to attract business travellers with flexible tickets, pre-booked seats and such other amenities.

Budget airline, easyJet designed a scheme to target customers who have flown 20 or more times within a year. The carrier offers benefits such as free name changes and altering tickets free of charge (Financial Times, 2015). This unique marketing technique helps to lure business travelers to fly onboard easyJet and sets itself apart from the rest of the low-cost carriers as well.

On the other hand, easyJet’s competitor, Ryanair launched Business Plus tickets, which allows travelers to unlimited flight changes for free along with priority boarding and extra legroom (Brooke, 2015). This distinctive step taken by Ryanair is an effort made by the carrier to improve its reputation for good customer service following years of complaints against the company for poor customer service (Thomas, 2014).

To increase competition and fight with Europe’s LCC, easyJet launched ‘flexi fare’, which covers unlimited changes, free, hold luggage, seat selection and fast track security. Undoubtedly the fare for the journey will increase but businessmen and woman will surely purchase tickets in order to make their journey comfortable (The Telegraph, 2014).

According to CBC News (2016), low-cost airlines offer a greener way to travel. Budget airlines emit just 35 percent of the carbon emission of traditional airlines, per passenger, thus, making it environmental friendly (Smith, 2010). Ryanair produces 410kg of carbon per couple in a return flight from London to Venice, whereas Alitalia produces 977kg on the same journey (Smith, 2010). Since LCC’s are based on single-class seating, it allows carriers to make use of space by fitting maximum number of seats, as a result, enables carriers to use their aircraft efficiently.

Furthermore, LCC’s operate mostly in secondary airports; it results in fewer delays during taxi, takeoff and landing. However, modern aircrafts, manufactured by Airbus and Boeing emit fewer carbon footprints and are therefore environmentally friendly (BBC, 2011).

To sum up the analysis, it can be concluded that budget airlines have influenced the aviation market and has helped in the economic growth of towns and less familiar destinations in various ways. Flying to secondary airports, helped LCC’s to cut costs as it has lower landing fees and less congestion, which reduces turnaround time, making it profitable. The low-fare business model has brought huge advantages to customers in terms of increased frequencies to destinations, greater choice, and lower fares. Definitely, marketing of LCC’s has helped to lure customers to fly on these airlines regardless of the location of airports and service.

Due to the liberalization of European air traffic, it has opened up opportunities for new carriers to enter the aviation industry and offer various business models to compete with traditional airlines. This business model has had a great impact in Europe, which is the reason of increased number of passengers are opting budget airlines to travel.

Likewise, budget airlines have played a huge role in making cleaner air by using a modern fleet of aircraft. Since the aircraft are fuel-efficient and have a low emission of carbon in the air, it makes it a recognizable business model.

References

BBC, 2011. Plane makers switch to cleaner engines. [Online] Available at: http://www.bbc.com/news/business-15571113 [Accessed 12 Jan 2016].

BBC, 2015. The towns transformed by budget airlines. [Online] Available at: http://www.bbc.com/news/magazine-34722176 [Accessed 7 Dec 2016].

BBC, 2015. The towns transformed by budget airlines. [Online] Available at: http://www.bbc.com/news/magazine-34722176 [Accessed 7 Jan 2016].

Brooke, S., 2015. More options for business travellers. [Online] Available at: http://raconteur.net/business/improving-options-for-business-travellers [Accessed 7 Jan 2016].

CBC News , 2016. Low-cost airlines may offer greener way to travel. [Online] Available at: http://www.cbc.ca/news/canada/kitchener-waterloo/discount-airlines-may-be-more-environmentally-friendly-1.3395208 [Accessed 12 Jan 2016].

European Low Fares Airline Association, 2004. Liberalisation of European Air Transport. [Online] Available at: http://www.elfaa.com/documents/ELFAABenefitsofLFAs2004.pdf [Accessed 9 Jan 2016].

Financial Times, 2015. Easyjet targets business travellers with new perks. [Online] Available at: http://www.ft.com/intl/cms/s/0/041de53a-87b9-11e5-9f8c-a8d619fa707c.html#axzz3wbLlyvRw [Accessed 7 Jan 2016].

Go Business, 2014. Low cost airline carriers opening new markets. [Online] Available at: http://www.go-business.nl/index.php/2014/10/low-cost-airline-carriers-opening-new-markets/ [Accessed 8 Jan 2016].

Go Business, 2014. Low cost airline carriers opening new markets. [Online] Available at: http://www.go-business.nl/index.php/2014/10/low-cost-airline-carriers-opening-new-markets/ [Accessed 9 Jan 2016].

Hameed, M., 2011. Low Cost Airlines: A Brief History, The Current State and The Future. [Online] Available at: http://aviationknowledge.wikidot.com/aviation:low-cost-airlines:a-brief-history-the-current-state [Accessed 6 Jan 2016].

Smith, C., 2010. No-frills airlines 'better for environment’. [Online] Available at: http://www.telegraph.co.uk/travel/travelnews/7051403/No-frills-airlines-better-for-environment.html [Accessed 12 Jan 2016].

Steves, R., 2016. Budget Flying Within Europe. [Online] Available at: https://www.ricksteves.com/travel-tips/transportation/budget-flights [Accessed 6 Jan 2016].

The Economist , 2011. Budget Airlines. [Online] Available at: http://www.economist.com/node/18010533 [Accessed 6 Jan 2016].

The Economist , 2013. Why are no-frills airlines so cheap? [Online] Available at: http://www.economist.com/blogs/economist-explains/2013/10/economist-explains-13