Why low cost airlines cheap. Ryanair Boeing 737-800
Why low cost airlines cheap ? Might this question emerged among us during plan to have a trip. According to European authorities, number of low cost airlines increase up to 35% of total airlines in Europe.
Ryanair was started low cost airlines trend in Europe back in 1990. Meanwhile in United States, Southwest Airlines was started even earlier in 1971. As a result many established airlines suffer from market share. These are below some reasons why low cost airlines can be so cheap.
Reason why low cost airlines cheap
Higher Seat Density. In Boeing 737 series, the airlines set the seats configuration to have 180 seats in all economy class. Compare to regular airlines, they set the configuration just 128 seats in economy and business class.
Fast Turnarounds. In low cost airlines concept turnarounds just need 25 minutes maximum. In simple words higher utilization of aircraft. Compare to regular airlines need up to 45 minutes.
Direct Flights. There are only point to point flights. No transfers flights and pretty short range flights. Most of regular airlines offer transfer flights and long haul flights. Intercontinental flights in hundreds of countries.
Use Smaller Airports. Have you realized that low cost airlines tend to fly to small airports. These would cost lesser and cheaper. Because small airports have simpler ground facilities. Passengers oftentimes should expense higher from small airports to downtown.
Tickets Are Direct Selling. Easyjet states that 95% of its sales came from online transaction. Regular airlines sale tickets via travel agencies that cost higher in some way.
No Unnecessary Extra Features. In Regular airlines you could have entertainment programs, lounges and meals. In budget airlines there is no frills. No additional costs though.
One Type Aircraft Fleet. This would cost airlines as low as possible. Cheaper maintenance since no differentiation of fleet. All crew can be pointed everywhere. No additional training cost. While in regular airlines there are various aircraft.
Employee to Passengers Ratio. Low cost airlines have lower employee to passengers ratio. For instance, Ryanair has 9679 passengers per employee. Compare to Air France has 715 passengers per employee. It will make significant efficiency in operating cost and more profit.
Southwest Airlines Boeing 737-700, Low Cost Airlines in USA
According to statistics, low cost airlines is 45 percent efficient in cost compare to regular airlines. So Those are some reasons, why low cost airlines cheap.