southwest airlines
low-cost carrier or low cost airline (also known as a no-frills or discount carrier / airline) is an airline that offers generally low fares in exchange for eliminating many traditional passenger services. The concept originated in the United States before spreading to Europe in the early 1990s and subsequently to much of the rest of the world. The term originated within the airline industry referring to southwest airlines with a low - or lower - operating cost structure than their competitors. Through popular media the term has since come to define any carrier with low ticket prices and limited services regardless of their operating costs.
southwest airlines Business model
Typical low-cost carrier business model practices include:
Not every low-cost carrier implements all of the above points (for example, some try to differentiate themselves with allocated seating, while others operate more than one aircraft type, still others will have relatively high operating costs but lower fares). Nonetheless these are general characteristics, most of which apply to any given low-cost carrier.
southwest airlines Particular characteristics of the United States market
The principal area of competition tends to be the full-coach or "walk-up" fare. Advance purchase fares tend to be competitive with major carriers but not significantly lower. Most successful LCCs try to offer a modicum of additional benefits, such as better on-time performance or more leg room. AirTran Airways has been very successful with its low-fare Business Class, while Frontier and JetBlue offer live in-flight television. US Airways offers a first class product, and a very extensive route network including international destinations.
southwest airlines History
The first successful low-cost carrier was Pacific southwest airlines in the United States, which pioneered the concept when their first flight took place on May 6, 1949. Often, this credit has been incorrectly given to southwest airlines which began service in 1971 and has been profitable every year since 1973. With the advent of aviation deregulation the model spread to Europe as well, the most notable successes being Ireland's Ryanair, which began low-fares operations in 1991, and easyJet, formed in 1995. Low cost carriers developed in Asia and Oceania from 2000 led by operators such as Malaysia's Air Asia, and Australia's Virgin Blue. The low-cost carrier model is applicable worldwide, although deregulated markets are most suited for its rapid spread. In 2006, new LCCs were announced in Saudi Arabia and Mexico.
Low-cost carriers pose a serious threat to traditional "full service" southwest airlines, since the high cost structure of full-service carriers prevents them from competing effectively on price - the most important factor among most consumers when selecting a carrier. From 2001 to 2003, when the aviation industry was rocked by terrorism, war and SARS, the large majority of traditional southwest airlines suffered heavy losses while low-cost carriers generally stayed profitable.
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southwest airlines Business model
Typical low-cost carrier business model practices include:
Not every low-cost carrier implements all of the above points (for example, some try to differentiate themselves with allocated seating, while others operate more than one aircraft type, still others will have relatively high operating costs but lower fares). Nonetheless these are general characteristics, most of which apply to any given low-cost carrier.
southwest airlines Particular characteristics of the United States market
The principal area of competition tends to be the full-coach or "walk-up" fare. Advance purchase fares tend to be competitive with major carriers but not significantly lower. Most successful LCCs try to offer a modicum of additional benefits, such as better on-time performance or more leg room. AirTran Airways has been very successful with its low-fare Business Class, while Frontier and JetBlue offer live in-flight television. US Airways offers a first class product, and a very extensive route network including international destinations.
southwest airlines History
The first successful low-cost carrier was Pacific southwest airlines in the United States, which pioneered the concept when their first flight took place on May 6, 1949. Often, this credit has been incorrectly given to southwest airlines which began service in 1971 and has been profitable every year since 1973. With the advent of aviation deregulation the model spread to Europe as well, the most notable successes being Ireland's Ryanair, which began low-fares operations in 1991, and easyJet, formed in 1995. Low cost carriers developed in Asia and Oceania from 2000 led by operators such as Malaysia's Air Asia, and Australia's Virgin Blue. The low-cost carrier model is applicable worldwide, although deregulated markets are most suited for its rapid spread. In 2006, new LCCs were announced in Saudi Arabia and Mexico.
Low-cost carriers pose a serious threat to traditional "full service" southwest airlines, since the high cost structure of full-service carriers prevents them from competing effectively on price - the most important factor among most consumers when selecting a carrier. From 2001 to 2003, when the aviation industry was rocked by terrorism, war and SARS, the large majority of traditional southwest airlines suffered heavy losses while low-cost carriers generally stayed profitable.
southwest airlines
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southwest airlines cheap fares
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