Some of the principles on Low-Cost Airline or Low-Cost Carrier (LCC) model are as per the following:
• Strictly managing unnecessary costs
• Optimizing the utilization of existing equipment and facilities, such as by using only one type of aircraft to decrease maintenance and pilot certification costs
• Becoming one of the Leaders in a carefully selected number of destinations
• No Frills
• Outsourcing of Services
• Simplified Procedures
• Increased Productivity
• High Frequency Point-to-Point Flights
• Continuously Improving Operational Processes
• Operating Efficiently and Effectively.
Using the above techniques, the airline’s unit-cost is minimized and the resulting savings may be passed onto the passengers.
The philosophy of a Low-Cost carrier is actually quite basic. Flights operate without the unnecessary extra features or arrangements that are on many full-fare commercial flights. Low-Cost airlines operate on the basis of efficiency.
Obviously Low-cost airlines will stick to all of the legal requirements regarding safety, Maintenance, health etc… of which will NEVER be compromised. Although low-cost airlines make cuts with the costs from non-essential services, but they cannot reduce costs on safety issues. While the quality of service is a significant issue, safety is the first priority. However, it should be noted that Low-Cost airlines have different package policies even amongst themselves. Conditions in each country vary, such as level of competition, business policies, or legal legislation which taken together may lead to differences in Low-Cost policies.
Low-cost airlines operate on the basis of efficiency. Their basic performance objectives are: Cost, Quality, Speed, Dependability and Flexibility. It is difficult to operate all these objectives simultaneously, so they give priority to their order winning factors which are cost, flexibility and dependability, whereas keeping a low cost is the main strategy.
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