Low Cost Carrier

Low cost carrier with offer no extra service which concentrate on offers of cheap cost has changed the passenger air service in today's world. Up until the end 70's worldwide airlines or global airlines has been controlled by commonly national airlines or being subsidies government. However this phenomena has changed, major airlines has underestimated the potential of low cost airlines. The successful of Southwest Airlines , Kulula.com. Air Asia etc. Has change the paradigm of airlines industries. With the operation strategy of using secondary airport, Marketing creativity , no business class , no refreshment , no frequent flyer programme etc. With no compromise on safety aspect, and operating at lower cost. The low cost airlines has a good competitive edge against the major airlines even the service is differentiated.

In July 2001, Comair has separately branded Kulula.com as Comair initiative. South African low-cost, no-frills airlines modelled on the successful European low-cost airline, EasyJet. Kulula.com had its inaugural flight on 1st August 2001.(1)

With the Key success factor of low-cost Airlines industry such as Attracting new and existing customers, High operation efficiency, Providing unique customer services, good quality and simple value at minimal cost, good financial management of the business and good marketing strategy via Kululas.com creative advertising Morrisjones&co. Which now is the impact tag line of "NOW EVERY ONE CAN FLY",this attributes and the positions of the airlines within the South African domestic and international passenger airline industry.

This case study of Kulula.com will be concluding with the answers of the following question above. Comprehensive study and critically evaluating the business strategy.