Low Cost Airline

Low-cost airlines also known as Low-Cost Carrier (LCC) originated as alternatives to legacy airlines also known as Full-Service Carrier (FSC).

Low-cost airlines attracted cost-conscious travelers by offering competitively low fares at rock-bottom prices while charging extra for other flight services. For example, meals and ancillary services are provided for an additional cost, which has already become a lucrative source of revenue for airlines.

Characteristics of Low-Cost Airline

Low-cost airlines are able to provide such competitive low fares by maintaining efficient aircraft utilization and lean operating costs. A few of the characteristics of low-cost airlines are as follows:

• Low-cost fares
• High aircraft utilization
• Homogeneous fleet structure (which reduces the aircraft maintenance cost)
• Lean Operations
• Faster aircraft turnaround time
• Point-to-point routes
• Utilization of secondary airports
• Strict cost-cutting measures

Competitive low fare is the primary advantage and major selling point for low-cost airlines. However, it’s the implementation of various other strategies that have provided Low-cost airlines a competitive edge over the full-service carriers.

For example, low-cost airlines largely operate on point-to-point routes, serving the secondary markets with high growth potential, which was largely neglected by the legacy airlines. This strategy provided low-cost airlines with an untapped market for growth. The continuation of this strategy also helped low-cost airlines to create a new passenger segment for themselves by opening new routes and serving the markets beyond the reach of legacy airlines. As a result, low-cost airlines took away a large share of the passengers from the existing legacy airlines.

Also, by maintaining lean operating costs and efficient flight operations, low-cost airlines have a much lower CASM in comparison to legacy airlines and have therefore been successful in staying competitive in the market.

Major Global Low-Cost Airlines

The major global low-cost airlines are:

1. AirAsia – Malaysia
2. EasyJet – UK
3. Norwegian – Norway
4. Southwest Airlines – US
5. AirAsia X – Malaysia
6. Jetstar Airways – Australia
7. WestJet – Canada
8. Indigo – India
9. Ryanair – Ireland
10. Eurowings – Germany

Major Low-Cost Airlines in Asia

The major low-cost airlines in Asia are:

1. AirAsia – Malaysia
2. AirAsia X – Malaysia
3. IndiGo – India
4. Scoot – Singapore
5. Jetstar Asia – Singapore

Major Low-Cost Airlines in Europe

The major low-cost airlines in Europe are:

1. EasyJet – UK
2. Norwegian – Norway
3. Ryanair – Ireland
4. Eurowings – Germany
5. Vueling – Spain

Major Low-Cost Airlines in North America

The major low-cost airlines in North America are:

1. Southwest Airlines – US
2. WestJet – Canada
3. Air Canada Rouge – Canada
4. Spirit Airlines – US
5. Frontier Airlines – US

Major Low-Cost Airlines in South America

The major low-cost airlines in South America are:

1. Sky Airline – Chile
2. Easyfly – Colombia
3. Gol – Brazil
4. Viva Air – Colombia
5. JetSmart – Chile

Major Low-Cost Airlines in Africa

The major low-cost airlines in Africa are:

1. Fastjet – South Africa
2. Mango – South Africa
3. Jambojet – Kenya
4. Fly540 – Kenya