Low Cost or budget airline?

Airlines discounters or more simply of the budget type (low cost) - This type of company is a new generation, which in recent times, its popularity has swept the world. New features in the business of air transportation, which leads to low rates and high demand.

The story of Companies Budget type

Beginning of Low Cost, which eventually ended in failure. 1970's first companies were PSA, People Express and Laker Airways, which were not destined to reach heights, and which were soon forgotten. In 1971, a company of the same type, called Southwest Airlines, acquired success with it and distributed low cost airlines throughout the United States. But in Europe, the real revolution of low-cost airlines occurred only 1990-s. And at that time, and some until today, the following airlines have achieved success: easyJet, Ryanair, Buzz and Go. These companies found their main popularity in 2000 year, when popularity reached almost all regions, the whole world. At that time, the flight duration was 1-2 hours. 

Differences between the traditional airlines from budget

The classic version of the airlines have routes that linked multiple nodes hubs. Due to the convenient connections to airports, all the flights are also quite comfortable. Thanks to excellent connections with several points, passengers are provided with a fairly extensive list of cities to visit, but certainly with a transfer hub. This latitude flights, attracts an audience carriers flying into a variety of the city.

A significant drawback of this system is the financial costs, the same as:

1. To connect the towns and cities will require corresponding size aircraft and their maintenance is costly as well and training of personnel, and other expenses.
2. Flights are both long and short, because of this, in airports-hubs from accidents that have become unprofitable.
3. Providing additional services in the form of business lounges, luggage transport and other demands money for at least content.
4. Just become unprofitable for airlines middlemen who earn quite not bad.
Company's budget plan as a basis have a different system, the essence of which was to provide additional services only to those who requested, Ticket without intermediaries, thus they have reduced ticket prices and increased cost efficiency.

Company's budget plan as a basis have a different system, the essence of which was to provide additional services only to those who requested, Ticket without intermediaries, thus they have reduced ticket prices and increased cost efficiency.

Economy of budget type companies is that planes fly from point A to point B, which eliminates the possibility of downtime, and an increase in the number of flights. In budget companies, usually one type of aircraft is used, that is, there is a savings in maintenance, and the lack of additional services, becomes sources of revenue. Also quite a convenient function of buying tickets through the Internet, which gives a smaller number of staff. What makes business much easier. It is worth noting the savings, the retention of ticket offices, as well as the production and processing of paper-type tickets.