Key Success Factors In The Low Cost Carrier Industry

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Warren D


Date added:

September 19, 2013







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2 / 345


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They are achieved by several cost-cutting business practices such as: o Point-to-point services (no waiting for baggage or passenger transfers, less complexity) o Cheaper product design (no free food or drinks, no newspapers) o Standardized fleet (lower aircraft capital outlay, lower training costs, cheaper parts & equipment supply, lower maintenance costs) o Use of secondary airports (lower charges) o Direct Sales via Internet as main distribution channel (less travel agent fees) - High operational efficiency: High aircraft utilization is crucial to maximize the profits of the airline...
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Hence, quick turnaround times at the gates are required to reduce the time on the ground, where aircrafts do not make profits. Moreover, maintaining a high passenger load is important to spread fixed costs, increase staff productivity and overall profitability. - High core service standards: In contrast to certain ancillary services such as free food and beverages, high core service standards such as safety, reliability (punctuality, reliable baggage delivery) and customer support are fundamental for customer satisfaction...
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