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Low cost airlines

Does it worth it?. Low cost airlines. LOW COST AIRLINES STRATEGY. The « low cost »: a cost domination strategy. Various sectors : Design Automobile Hairdressers Food Objective: minimize the cost to decrease the price. Air low cost: definition.

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Low cost airlines

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  1. Does it worth it? Lowcostairlines

  2. LOW COST AIRLINES STRATEGY

  3. The « low cost »: a cost domination strategy • Varioussectors: Design Automobile Hairdressers Food Objective: minimize the cost to decrease the price

  4. Air low cost: definition The rule: deletion of all wichissuperfluous

  5. Air low cost: caracteristics • Single type of plane No booked seats • Secondary terminals short flights and fast stopovers • Simplified routes paying meals • Direct sales of tickets via internet • Reduction of the staff and employees “multi functions” • More seats on the plane: reductions of the space between rows, deletion of toilet, single class on board • "Subsidies" delivers by "secondary" cities • Little or no marketing budget

  6. Lowcostairlines: the competition The leaders:Low-cost subsidiary (segmentation of the market) Air france: Transavia British airways: GO Lufthansa:Germanwingz Delta: Song Quantas: Jetstar Air canada: Tango airlines

  7. LOW COST AIRLINES IS NOT WORTH IT !!!

  8. Humoristicvideo

  9. Economicdisadvantages • Comfort and services in cabin are reduced • Secondaryairport, supplementary deadlines • The correspondances and the frequency of the connections • No particulartreatments for the traverllers • Additional costs for on-line payments and luggage in hold • Difficult management of the unforeseen (delay or deletion of flights)

  10. Quality of services • Even if some services are payingthey are sobad. • If a plane have an injuryit’s impossible to have an other plane • Impossible to book a seat • When the travelers have to change plane they must register again their luggage, even if they stay on the same company and in certain case pay again the recording.

  11. Tickets are as expensive as an other company if youwait the last moment • Tickets are not refundable or exchangeable • Few round-trip tickets • Bookingonly by internet – discrimination

  12. Security in lowcostcompany • Planes have a time of fly from 11 hours by days • Stopover lasts only 25 min - little for check of the plane • Device can stolen no more than 4 hours thus obligation for traveler to change device for a big travel.

  13. Ecological point of view • Plane steals much more that on normal company • Remote airport which obliges the passengers to take taxis - more pollution • Low price which allows people to travel more by plane.

  14. THE FUTUR LOW COST AIRLINES

  15. In july, Ryanair hopes to develop a space which the passengers travel up. • The place would be proposed in less 50% of normal price • The idea is at a stadium of development • The Rayanair’s boss discusses at present with the aircraft manufacturer in order to fit out his places in a particularly original way.

  16. The goal of Ryanair • break the price for passengers • Increase the profitability • Increase the number passenger on every flight • The flight in position standing would allow: • to embark until 40% of supplementary passenger • to come along with a 20% cost cutting for the company.

  17. Debate • Ryanair’s boss had already distinguished himself by suggesting: • to tax the persons in overweight • to charge the access to toilet. • Ryanair proposes numerous ideas to reduce its costs for example: • To charge the toilet paper • To tax the break fast brought from one • Still make paying their web site What are the limits of a downsize political cost?

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