For $ 60 across the ocean: Pros and ConssteemCreated with Sketch.

in #economy7 years ago

WOW.jpg
Fly from the US to Europe and back can now be quite inexpensive. European loukostery actively pushed around in this profitable route traditional airlines and low oil prices and new fuel-efficient aircraft in that they only help. Consider the pros and cons of this business.

Of course, loukostery take money for all kinds of additional services - baggage, carry-on baggage, choice of seats, meals, boarding pass printing and even blankets. But still fly them cheaper than conventional airlines - ticket across the Atlantic on one side is available for $ 55-69.

Loukostery can afford it, as successfully reduce operating expenses. For example, they use the new aircraft that consume less fuel, reduce the residence time of the aircraft on the ground, hiring young employees at a lower wage, without intermediaries sell tickets.

loukosterov development has also helped the elimination of administrative barriers. In 2008, an agreement was signed "open skies" between the US and the EU, according to which any European airline won the right to fly from any EU country, not necessarily of their own, in any US city. US airlines in turn, also got the right to fly freely in the US in any EU country and between them.

Competing with low-cost airlines, traditional airline forced to reduce prices. Thus, compared to the previous year flights from the US to Europe, on average fell by 20%, and in the most popular cities such as Paris, Amsterdam and Barcelona - all 30%.

However, experts say this trend as the convergence of prices for different categories of carriers. Loukostery still have to raise the salaries of staff, and therefore increase prices. A traditional airlines try to at least partially reduce their costs in order to be able to reduce their prices.

But the more expensive traditional airlines have their own advantages. They have more aircraft flying in an increasing number of cities, but due to alliances with other airlines Route selection may be even richer. With them easier for passengers to plan the transplant, and Multiple destinations loukostery lose.

If we talk about long-haul flights, then loukosterov there is another weak point. And it's not even their fault, but rather a feature of the market. The fact that major customers low-cost airlines are people seeking to save. A long-distance passengers are usually fly only during the long vacation, that is not very often. In addition, during the holiday flights is only a small part of the cost, and for many passengers wish to fly on a vacation with the comfort outweighs the desire to save money.

The majority of passengers flying long distances for business purposes. In this case, the price for them is not so important as the service and a convenient schedule. But loukostery fly in a limited number of cities, and the flights have not so much, so on long-haul routes traditional airlines feel more confident.

However, low rates are doing their job, attracting more and more passengers, and low-cost airlines have any chance of a good chunk of the market pie, if oil prices do not rush up. So that the traditional airlines do not need to relax and fight for passengers. If you do not price the service.

Sort:  

👍

Nice idea, but discount airlines rarely survive (can you spell GREYHOUND?).

Dude Greyhound is still going and has been for my enire life.

Greyhound Air (Canada) isn't still going, it lasted less than a year.

OIC never even heard of it....lol!

Good idea my friends...

Coin Marketplace

STEEM 0.16
TRX 0.13
JST 0.027
BTC 59583.90
ETH 2578.21
USDT 1.00
SBD 2.48