At the beginning of the 1980’s , the first Low Cost Airlines (LCC) were initially ridiculed as a peripheral “exotic” business case phenomenon, especially by global network or national flag carrier. No one from the established airlines sincerely believed that it can be a sustainable and successful business model, or even constitute a threat or an serious alternative to their existing business model.
With rising number of passengers, traffic capacities and sales revenues over the last 30 years, the low-cost airline business is a very successful concept and copied by many network carriers and newly founded airlines.
The most important question within our research. Approximately 176 Airlines worldwide claimes to operate as Low Cost Carrier, we examined them all: we have set up different criteria and categorized every single airline – here are the results –
Together, the o.g. Airlines offer more then 749.000 Seats per day and covering 4031 Destinations worldwide.
The LCC Carrier produces with less costs then the Regular Airlines.
That economic efficiency is reflected also on the price structure, the graphic below shows the average cost savings of LCC’s in comparison to the avearge fares of FSC’s
According to our passenger satisfactory survey (COSY) , more than 1. 400 Business Traveller’s evaluated 62 international airlines , including LCC’s – The gap between FSC’s and LCC’s is getting smaller.
Rating scale : 1 = poor —-> 5 = Excellent
The differences of business concept are becoming smaller, a rapprochement between FSC and LCC is already taking place and will continue
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