Budget Airline and its characteristics


Budget Airline

Where budget airline appears:

Text, letter

Budget airlines began to appear in the United States in the early 2000s, with the launch of JetBlue and Southwest Airlines. Today, there are more than a dozen such airlines operating in the country.

The budget airline model:

A large passenger jet flying through a cloudy blue sky

The budget airline model is based on the premise that passengers are willing to forgo certain amenities – such as assigned seating, meals, and checked bags – in order to save money on their airfare. In exchange for these cost savings, budget airlines typically offer a more limited route network and a less comfortable travel experience.

Characteristics of budget airline:

While all budget airlines share common characteristics – low fares, simplified fare structures, and a restricted route network – there is no single definition of a “budget airline.” Some definitions include only low-cost carriers, while others also include airlines whose business models are not found in other parts of the commercial airline industry.

Descriptive words to describe budget airline:

Less comfortable

Restricted

Simplified

Low fares

No assigned seating

Uncomfortable travel experience

Aircraft did not service the same as normal airliners

Cabin pressurization is optional/less common.

Features of budget airline:

Low fares

Simplified fare structures

Restricted route networks

Less comfortable travel experience

No assigned seating

No on-board meals or entertainment

Aircraft not serviced in the same way as normal airliners

Cabin pressurization optional/less common

Proposed by Michael O’Leary in 1984

What Facilities does budget airline provide?

The facilities that budget airlines provide can vary depending on the airline. However, many budget airlines do not provide assigned seating, meals, or entertainment. In addition, their aircraft are typically not serviced in the same way as normal airliners and may have no cabin pressurization.

Budget airline offers:

Budget airlines often offer a streamlined version of economy class with no onboard meals or entertainment. In addition, their aircraft are not serviced in the same way as normal airliners and sometimes have no cabin pressurization.

In 1984, Ryanair’s managing director, Michael O’Leary proposed a new low fares airline at the Irish Congress of Trade Unions (ICTU). A year later at ICTU’s annual meeting, O’Leary said his airline would be “a spartan low fares carrier with highly qualified crews and aircraft that will not be subjected to punishing schedules.”

Is budget airline comfortable?

Budget airlines are typically less comfortable and have a more restricted route network than traditional airlines. Their fares are also usually much lower, and they do not offer assigned seating. Additionally, their aircraft are typically not serviced in the same way as normal airliners and may have no cabin pressurization.

Where are budget airlines successful?

The budget airline model has been successful in Europe, where LCCs now account for more than 50% of the total commercial airline market. In contrast, the budget airline model has been less successful in the United States, where no-frills airlines account for only about 12% of commercial air service.

What is the success rate of a budget airline?

The success of a budget airline can be measured in different ways. For example, many European LCCs are now the most profitable airlines in their respective markets, which indicates that they are successful from an operational perspective. However, this success does not necessarily indicate the absence of problems – most LCCs have had to overcome major obstacles since their inception.

Subscribe to our monthly Newsletter
Subscribe to our monthly Newsletter