With the deregulation process experienced by aviation in the early 90's, the model spread to Europe to succeed, as in the case of Ryanair or easyJet British. In 2004 a wave of new low-cost airline Australasia invaded, with the Malaysian Air Asia and Australia's Virgin Blue to the head. The low-cost operating model is applicable worldwide, although deregulated markets are most appropriate for rapid expansion. For 2006, new airlines have announced its kind in Saudi Arabia and Mexico.
The low-cost carriers pose a serious threat to traditional airlines "full service" because the high operating cost of the latter does not allow them to compete effectively with ticket prices offered by low-cost, and this is the most important factor for customers. From 2001 to 2003, when the aviation industry was hit hard by terrorism, war and SARS, the vast majority of traditional airlines suffered heavy losses while low-cost companies remained positive.
Many companies chose to launch their own low cost subsidiaries, as Buzz from KLM, Iberia's Clickair, Go Fly British Airways or United Airlines Ted, but ran into serious difficulties to keep your business be devoured by their parents. Exceptions to this are 'bmibaby' of Bmi, SAS Snowflake, Germany germanwings (controlled by 49% by Lufthansa) or Jetstar Qantas, all capable of operating in conjunction with its full-service matrices.
In the market for destination travelers, low-cost airlines also compete with passenger charter flights.However, the inflexibility of charters (particularly as far as the length of stay is concerned) has made them unpopular among travelers. You attempted to extrapolate the dynamics of low cost to other industries and businesses like hotels or software.
If you usually go or you stay informed about the economic news, you surely know about the boom in budget airlines. These companies have been born after the deep financial crisis that have experienced the great players in this sector of the economy, which have seen the economic splendor spend several decades, to an extent such as merging with other companies or bankruptcy. And is that the business of commercial flights seemed to come to a standstill, if not for the emergence of a wave of small airlines willing to put up a fight.
But all people seem to like the new options to fly cheap in exchange for
The low-cost carriers pose a serious threat to traditional airlines "full service" because the high operating cost of the latter does not allow them to compete effectively with ticket prices offered by low-cost, and this is the most important factor for customers. From 2001 to 2003, when the aviation industry was hit hard by terrorism, war and SARS, the vast majority of traditional airlines suffered heavy losses while low-cost companies remained positive.
Many companies chose to launch their own low cost subsidiaries, as Buzz from KLM, Iberia's Clickair, Go Fly British Airways or United Airlines Ted, but ran into serious difficulties to keep your business be devoured by their parents. Exceptions to this are 'bmibaby' of Bmi, SAS Snowflake, Germany germanwings (controlled by 49% by Lufthansa) or Jetstar Qantas, all capable of operating in conjunction with its full-service matrices.
In the market for destination travelers, low-cost airlines also compete with passenger charter flights.However, the inflexibility of charters (particularly as far as the length of stay is concerned) has made them unpopular among travelers. You attempted to extrapolate the dynamics of low cost to other industries and businesses like hotels or software.
If you usually go or you stay informed about the economic news, you surely know about the boom in budget airlines. These companies have been born after the deep financial crisis that have experienced the great players in this sector of the economy, which have seen the economic splendor spend several decades, to an extent such as merging with other companies or bankruptcy. And is that the business of commercial flights seemed to come to a standstill, if not for the emergence of a wave of small airlines willing to put up a fight.
But all people seem to like the new options to fly cheap in exchange for