HOW DO LOW-COST AIRLINES ACTUALLY WORK?

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Low-cost airlines, discount and no-frills carriers - all these are the names of the same cheap type of air transport, which arose long ago in the West, and is now actively developing on our market. Its essence is the ability to fly cheaper, sacrificing comfort and unnecessary services.

At first, when young low-cost companies needed to loudly declare themselves, tickets for 10, 5 or even 1 € often went on sale. Now you can hardly count on such generosity, but the opportunity to fly for 20-30 € remains even today.

What's the catch, why is it so cheap?

There is no catch, you can really fly abroad for the price of a modest lunch in a restaurant. You just need to know how  low-cost airlines save money and understand how to use this knowledge to your advantage.

Briefly, the low-cost airlines' approach to pricing can be described as follows: “we only give the opportunity to fly, you pay for the rest”. The principle is competent and really helps to reduce costs, so many classic airlines began to apply it. For example, airBaltic, the national carrier of Latvia (like Aeroflot in Russia), offers such attractive ticket prices that it can easily be classified as a low-cost airline.


There are also fanatical low-cost airlines. In pursuit of total cost cuts, they seem to forget that they have passenger planes and people fly on them. The seats on the planes of such companies are like in the subway during rush hour. Delays, late arrivals, check-in and baggage problems are the norm rather than the exception. And the process of filing and considering a complaint is so exhausting that it is easier to forget about complaints and not spoil your nerves.

But most modern low-cost airlines still choose a more “human” business model, similar to that of traditional airlines.

How low-cost airlines save money

Airports

Airport tax is a fee for servicing an aircraft, but it is taken, of course, from passengers. How to reduce the amount of the fee and, accordingly, the price of the ticket? Fly to cheaper airports. Which airports are cheaper? Those that are older and away from the city.

For example, the Hungarian low-cost airline Wizz Air uses the Katowice airport in Poland as one of its bases. And this airport is located 100 km from the nearest city of interest to tourists - Krakow. In general, even non-tourist Katowice is 30 km from there. Of course, public transport is developed here, and you can leave without problems - but this is extra time and money.

Fortunately, low-cost airlines do not always have to resort to this option. Often their bases are old airports, which, in order to somehow survive, set minimum airport taxes.

These airports are usually located within the city, and tourist destinations can be reached quickly and conveniently. For example, Zhuliany airport in Kiev, from where Wizz Air flies. Or Don Muang Airport in Bangkok, which was left out of business after the opening of modern Suvarnabumi Airport and has now become the base for several Asian low-cost airlines.


Another way to reduce airport tax is to reduce the cost of the airport infrastructure. Can you imagine how much all these buses that carry passengers to planes cost? And add here gasoline, maintenance, the salaries of drivers and mechanics. Boarding bridges are a cheaper alternative to buses, but they also cost money. Therefore, in the main hub of Air Asia - the LCCT terminal at Kuala Lumpur International Airport - passengers walk from the gate to the plane on foot.


However, some low-cost airlines choose more convenient airports to stand out from the competition. And, for example, the Spanish discounter Vueling Airlines, in principle, flies only to the main airports at all destinations.

Flight times and frequencies

Not only passengers but also airlines pay for parking at the airport. Therefore, most low-cost airlines prefer to keep their aircraft not on the ground, but in the sky. Landing, people coming out, people coming in, taking off. And so the whole day. Like a minibus, only the interior is cleaned in between. As a result, low-cost aircrafts  “spend the night” only at their hub airports.


Airport tax often depends on the arrival time of the aircraft. It also has its own seasonality. Cheaper at night than during the day; more expensive during the peak tourist season than at other times. And most of the low-cost airlines are scheduling these price fluctuations. Therefore, when buying a ticket, pay special attention to the time of departure and arrival.

Aircraft fleet

New cars are always given a three- or even five-year warranty. Just because a solid car rarely needs repair in the first years of being used. It's the same with airplanes.

To avoid the cost of repairing and maintaining a large staff of technicians, low-cost airlines try to fly only new aircraft and only one model. After the planes have served 5-6 years, they are sold to other airlines. For example, according to planespotters.net, the average age of the planes of the British low-cost airline easyJet is just under 5 years, and the average age of the planes of the national carrier British Air is about 13 years. By the way, this gives a reason to think about which airlines are safer to fly - budget or classic.

Another obvious way to save money is to pack more passengers on the plane. Therefore, low-cost airlines often order airplanes with more seats in the cabins than in the aircrafts of classic airlines. There is another way to make money behind the narrow aisles between the rows - to sell tickets for seats with more legroom at a much higher price.


Sale period and ticket refund policy

Driving an empty plane back and forth is unprofitable. Any airline is interested in having its planes 100% full of passengers. But in reality, according to IATA, the average global occupancy rate is about 70%, and every airline knows about it. They try not to talk about it out loud, but the prices for air tickets are set so that even 70% of passengers ensure the profitability of the entire flight. In other words, by buying a ticket, you pay for yourself and for another half of an empty seat on the plane.

The other side of this coin is that the airline knows that its flight will almost certainly pay off, but at the same time 20-30% of empty seats will remain on the plane. Why not sell out tickets for these seats and earn more? This is how regular discounts and promotions appear with low-cost airlines and classic airlines.


Selling tickets early is another way to save money. You buy a cheap ticket today with a departure date in six months. You are happy because you have saved. And the company is happy, because it will use your money for free for six months. It turns out something like an interest-free loan. Moreover, a loan that does not need to be returned. Because most low-cost airlines do not allow you to return your ticket. Even a simple change of the departure date or the passenger's name can cost more than the original ticket price.

However, even with a non-refundable ticket, you can get at least part of the money back. For example, if you do not show up at the airport, many low-cost airlines, including Air Asia, will refund you (even in a month and a half) the amount of the airport tax. In addition, most companies have tariff plans for which you can still return a ticket. You will have to pay extra for such an opportunity, but, nevertheless, this is a good option if you are not at all sure about the dates.

Ways to buy a ticket and check in for the flight

The same principle of saving applies here as in online stores. It is expensive to maintain fixed offices and their employees. Therefore, low-cost airlines sell their tickets on the Internet on their own sites. At the same time, classic airlines often sell tickets through an agent network, and each agent, of course, marks up the price.


Paying salaries to employees at airport check-in counters is also expensive. Therefore, online check-in for a low-cost airline is free, and at the airport - for money.

Meals on board

Not a single low-cost airline feeds passengers in flight for free. This is another manifestation of the principle “we only give the opportunity to fly, you pay for the rest”.

In fact, eating on the plane on short flights is more of a way to entertain the passenger, or at least distract him from the flight. Indeed, is it really so difficult not to eat for 2 or 3 hours? Especially if you had a snack at home or at the airport before your flight.

To avoid paying for a mediocre meal on the plane, like for dinner in an expensive restaurant, bring something to eat with you. For example, dried fruit with nuts or a pack of cookies. Formally, airlines prohibit taking food on board. In practice, flight attendants never pay attention to this.

If you are still sure that you will get hungry, order food in advance on the low-cost airline's website. So it will cost at least half as much as buying on the plane.

Entertainment on board

In modern aircraft, there are many ways to have fun during flight. The monitor in the back of the seat in front makes it possible to listen to music, play games or watch a movie. Such aircraft are used by some low-cost airlines, such as FlyDubai. But you will have to pay for headphones and for each movie.


At the same time, in the last six months alone, several dozen airlines have announced the cancellation of senseless bans on the use of electronic devices on the plane. And you will probably take one or more gadgets with you. Therefore, in order not to overpay - just charge your laptop, tablet or e-book before the flight. 

Seat selection

Low-cost airlines manage to make money even on such trifles as a seat on the plane. A classic airline always gives you the opportunity to choose a seat when registering on the website or ask the girl at the check-in counter to seat you at the window. Low-cost airlines do not provide such an opportunity.

By default, the online check-in system will most likely give you an aisle seat. If you want to sit by the window, pay extra. If you buy more than one ticket, the system can scatter you and your fellow travelers to different parts of the cabin. If you want to sit next to it, pay extra. Need more legroom - pay even more and sit at the emergency exit or in the front row. However, this is not only a feature of discounters; classic airlines have also been selling legroom for a long time. But low-cost airlines have a greater legroom problem because their planes tend to be heavily seated.

Low-cost aircraft are not always 100% full. Often there are a few empty seats, and if you politely ask the stewardess, you will be transferred without any problems. The exception is unoccupied "elite" seats at the beginning of the cabin or near emergency exits: you will almost certainly not be transferred to them. If there are no free seats, you can always ask other passengers to switch seats.

Luggage


The most noticeable difference between low-cost airlines and regular airlines is their baggage policy. If a classic company always includes the carriage of one piece of hand luggage and one piece of checked baggage in the ticket price, then at a low-cost airline you can count on only hand luggage. At the same time, the surcharge for the transportation of a suitcase can be twice the price of the ticket itself.

Summary

A ticket for a low-cost airline flight will be really cheap if you pack all your luggage in your hand luggage, don't order food and choose a seat on the plane, and buy a ticket and check in for your flight online.

If you want to save money, but are not ready to sacrifice comfort - try to buy tickets for classic airlines at promotions and sales and subscribe to our social media accounts so as not to miss out on the best deals!