Budget Airlines
Friday, August 15, 2008 14:56
Generally, a low-cost carrier or low-cost airline is an airline that offers low fares in exchange for eliminating many traditional passenger services. This term originated in the U.S. before spreading to Europe in the early 1990s and subsequently to much of the rest of the world.
In the airline industry, it usually refers to airlines with a lower operating cost structure than other competitors. With more people enjoying the idea of getting no-frills travel at a fraction of the price, literally, the idea of low-cost airlines has quite taken off over the past ten years. Such airlines advertise that they are committed to providing travel at affordable prices.
But the concept of “budget airlines”, in fact, doesn’t always mean airlines operating with lower cost. Many of these airlines just cut the offering of free things such as food and drink, which people will take for granted with the more mainstream airlines, and charge extra fees for such things.
But, when the Canadian budget airline—Zoom collapsed, thousands of passengers were left trapped. It became a timely reminder that with most things, people tend to get what they pay for. Before Zoom bit the bullet, the Irish airline—Ryanair, just announced that despite a predicted loss of up to 60 million pounds in 2009. However, it’s interesting that this company claimed that even if fuel costs remain high, they would be cutting fares instead of raising them.
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