Lccs Case

In 2006, an authoritative and famous organization, OAG which is the subcompany of UBM Aviation (United Business Media Limited) announced "the review of passenger data in worldwide air transportation" (2006), the report showed that the transport capacity of low cost carriers (LCCs) accounts for 17% in the overall market, LCCs market share accounts for 27% in USA, 24% in Europe. Since American government loosened aerospace control in 1978, Southwest Airlines that is established in 1971 has been the richest airline in USA. Nowadays, low-cost pattern has already been applied throughout the world and this successful pattern has obtained more and more attention from traditional airlines. In this text, by means of the comparison between smaller airlines and larger airlines, for instance, British Airways, Ryanair, EasyJet and so forth, the core features of low cost airlines will be clearly outlined and the reasons for low cost carriers' benefits will be distinctly expounded as well. On the other hand, some specific evidence and cases will be used to debate whether bigger airlines can duplicate LCCs' practices or cannot. Based on these analyses, the outcome of why smjavascript:activate_paper(5992)aller airlines are more profitable will be ultimately reached.

Initially, the low cost airlines is a system, from airport to airport service and plane to flight service, the whole process is low cost. The most marked characteristic of it is pragmatism, thus, under the low cost restriction, LCCs must confirm some disciplines such as resource saving and consuming reduced. Secondly, the first factor customers usually focus on is safe, and it wasn't a problem for LCCs at present. Additionally, the low ticket price is smaller airlines' biggest advantage, and all of traditional airline can't reach it now. Thirdly, low cost airline originally is a consumption region which depends on the typical popularity. To sum up, smaller airlines has