Airline company at low prices

A airline company at low prices (often indicated in French by the American English name of company low cost ) is a Airline company generally proposing flights short or middle-distance at prices relatively low but offering less services than the traditional companies. The air concept was born with the the United States at the end from the Années 1940 but without developing to the current of the Années 1970 with the success of Southwest Airlines . These companies at low prices appeared in Europe at the beginning of the Années 1990 then extended at a great part of the world. The concept even of voyage economic existed however in France as of the end of the XIXe century, the Agency of the Economic Voyages proposed indeed already excursions “ at very reduced prices ”.

In the aircraft industry, this term thus indicates the airline companies whose cost structural of exploitation is less than that of its competitors. In the language running, a company at low prices is a company proposing of the not very expensive tickets, but offering few services associated to the vol.

Model of company

The typical model of the airline company at low prices is characterized by the following points:

Only one class on board.
Only one type of plane to reduce the maintenance costs. They are generally Boeing 737 or planes of the range Airbus A320 (Boeing 737-800 for Ryanair and A319 EasyJet for example)
a simple system of price: generally, the price increases as the plane fills, which forces the travellers to hold as soon as possible.
No reserved seats (thus forcing the passengers to embark early and quickly).
Use of the terminals, even of secondary, less crammed and thus less expensive sometimes airports (but also less well equipped and not being able to make land the planes in the event of bad weather, fault of equipment allowing the adapted approaches).
Of the short flights (maximum 3 hours) and of the fast stopovers (approximately 25 min), a plane being less profitable on the ground than in flight
Of the simplified ways, privileging the flights points at points, by avoiding the platforms of correspondence.
Favorisation of the direct sales of the tickets, mainly via Internet to avoid the expenses induced by the travel agencies and the systems of data-processing reservation.
Of the employees fulfilling several functions: the sailing personnel commercial can also be invited to clean the plane lasting the stopover.
Of the paying meals (also a source of profit for the company)
the fuel is bought in advance, in order to minimize its price.

History

The very first company at low prices having been success is Pacific Southwest Airlines, with the the United States, whose first flight took place the May 9th 1949. One often wrongly associates the birth of this type of airline companies with Southwest Airlines whereas the latter began its activity only in 1971 and became profitable in 1973. With the advent of the Deregulation of air transport in the Years 1990, this model of company developed in Europe, the most notable successes being the company Irish Ryanair which entered this market in 1991 and the British EasyJet created in 1995. In 2004, a wave of creation of companies at low prices in Southeast Asia and Australia like Air Asia and Virgin Blue once again showed that the model low cost was applicable about everywhere, although the déréglementées zones are more favourable with its development. In 2006, a creation of low cost was announced in Saudi Arabia and with the Mexico.

The companies low cost threaten seriously the traditional companies, these last not being able to propose so low prices because of their costs of exploitation, whereas the price is however the most important criterion, from the point of view of the consumers. Of 2001 with 2003, whereas the aircraft industry underwent the consequences of the Terrorisme, of the Guerre and the atypical Pneumonie, the majority of the traditional companies were involved in debt whereas the majority of the low costs remained profitable.

Many the companies then chose the launching of their own die low cost: KLM launched Buzz, repurchased in 2003 by Ryanair, British Airways launched Go Fly, United Airlines launched Ted, and Air France more recently extended at the beginning of Orly the services of Transavia, subsidiary of KLM.

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