Introduction (Edito) 2
I) How did low cost airlines appear? 2
a) What is a “low cost” airline? 2
b) How do they work? 2
1. Characteristics 2
2. Typical travelers 3
c) Economic crisis 4
1. What is an economic crisis? 4
2. Economic crisis of 2008-2009 4
3. What are the consequences? 4
d) Transport Company in decline 4
1. Why? 4
II) The air low cost 6
a) Market’s caracteristics 6
1. Indirect Competition: 6
2. Direct Competition : 6
b) Success and failure 8
1. Two successful airlines 8
Strategies’ comparison 8
2. Why could not anybody be low cost? 9
III) The future of the low cost airlines 11
a) A possible cohabitation 11
b) Are the traditional airlines in danger? 11
c)What are the solutions for the traditional companies to save their place? 12
d) Low cost airlines are not either in a total safe position 13
Everywhere and all the time, people talk about the crisis. But which are the real effects on our lifestyle? Our habits of consumption change, our approach of the products and our perception of the quality evolve. So which are newcriteria of consumption of the population? Some companies well-understood it and adapted themselves to these changes. The sector which will be developed in this article is the transport. This sector took benefits of the new ecologic and economic wave to create his alternatives. Moreover, one of the best successes of the “low cost” is still the airlines like Easyjet and Ryanair can show us withtheir great expansions. The low cost is definitely decided to seduce us. Does it mean the end of the airline called “luxurious” like Air France? But is this expansion will keep going or will reach the end at the top?
I) How did low cost airlines appear?
a) What is a “low cost” airline?
The first low cost flight that has succeeded was in America on May 9th 1949. With the advent ofthe deregulation of the sky in 1987 in Occidental Europe, low cost airlines develop themselves specifically in this part of the globe. The most successful ones are: an Irish Company: RYANAIR and a British Company: EASYET that entered in the market in 1991 and in 1995. In 2004, a wave of low cost airlines began to be created all over the world, such as in Asia, Australia or Mexico. The same year, inEurope low cost airlines represented about 19% of the offer in the Intra-European-West market. Nowadays RYANAIR and EASYET hit the 6th and 7th place in term of the volume of offers, in front of traditional companies such as KLM*.
b) How do they work?
Typical model of low cost airline own very specific characteristics. First, they own only one class. Business oreconomic do not exist because taking “low cost” is the same treatment for everyone. Second, consumers have to pay for any services. Meals, drinks, snacks and others are not free. Third, price system is simplified to the maximum. Fuller the plane is, more the price of the ticket would be high. This obliges customers to reserve their tickets a long time ago before their flight. Moreover, when you enterin a “low cost” you have no reserved sits. It means that travelers have to take on board as soon as they can to get the sits they desire Journeys are also simplified. Companies privilege flights from point to point and avoid correspondences plate-forms and favor direct sells tickets from internet to avoid agency expenses. Then planes land only on secondary airport. For example, instead of leavingfrom Paris Orly or Charles De Gaulle they leave from Beauvais which is less crowded so cheaper .Another typical characteristic is that low cost airlines only make short trip, no more than three hours in the air with less than 25 minutes in stopovers to minimize costs. A plane is more profitable* in the air than on earth. About the staff, employees have different duties. The commercial navigator...
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