Budget Airlines Change
the Landscape

chillibreeze writer — Priya Kaushik

In Europe the combination of deregulation initiatives and an explosion of low-cost airlines have made traveling between European countries cheaper and faster. Low-cost carriers now account for about 25% of scheduled passenger traffic between Britain and the rest of the European Union, and 7% of European air traffic overall.

The U.S. airline market was deregulated in 1978. Airfares dropped 40 percent in real terms between 1978 and 1997, saving travelers an estimated $20 billion a year and more than doubling the total number of passengers. Today, with discount-airlines taking over the skies, new entrants are trying to carve a niche for themselves by offering specialized services.

In India, the aviation boom began in the 1990s with private carriers starting domestic services. Today low cost airlines not only have bridged distances but have made air travel accessible to the Indian middle class. The impact of the aviation revolution has not only boosted small businesses but has also given a big fillip to Indian tourism. Budget airlines have also helped air passengers of all hues by forcing full service airlines to reorganize their pricing structure and stay attractive for passengers who are constantly looking for cheaper fares.

No-frills carriers keep costs low by getting passengers, including those from abroad, to book online, thus saving on distribution costs and travel agent fees. Additionally, all the budget carriers use a ticketless system and some of these carriers do not assign seats. Budget carriers also use secondary or tertiary airports, where lower airport taxes allow cheaper operating costs. These airports can be inconvenient for travelers as they are located in far off places, away from the city hub. It is also advisable to travel light as most budget airlines are very finicky about luggage weights.

Despite the pitfalls the model followed by the budget carriers has worked so well that some of the traditional carriers are revamping their style. Travelers the world over are happy with the wallet-friendly, no-frills bare bones service offered by low cost airlines. There is no denying the fact that the advent of budget airlines has made a little bit of sky available to all.

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—About our writer: Priya says, "An eternal optimist, my mission in life is to reach out to people who need help. I am passionate about reading and books are my lifeline. I enjoy watching movies and listening to classical music. My idea of bliss is to curl up with a good book with my Labrador snoozing at my feet."

 

 

 

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