Category Strategy
On-board operations Optimum use of seating space.
Minimal crew.
Limited and paying cabin service.
Aircraft operations Few (often one) types of aircraft used to minimize maintenance costs.
Stair boarding instead of air bridges.
Maximal usage of runway length (take-off thrust and braking on landing).
Fast turn around to maximize aircraft use.
No freight being carried.
Service network Point-to-point services.
Destinations commonly of less than two hours apart.
Usage of secondary airports (lower usage rates).
Booking Online booking to minimize transaction costs.
No travel agent commissions.
Source: adapted from Graham, B. and T. Vowles (2006) “Carriers within carriers: a strategic response to low-cost airline competition”, Transport Reviews, Vol. 26, pp. 105-126.

Strategies of Low-Cost Carriers

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Copyright © 1998-2008, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. Permission MUST be requested prior to use.