Setting up an airlines business involves investment of huge
sums of money. This investment of capital nature and the operating costs of the
airlines signifies involvement of too much of money in this business. The
product which is sold with this level of investment is that of seats. In order
to ensure that the airline business does not go defunct, careful assessment of
internal and external factors is done along with short and long term planning
for marketing.
This leads to the selection of the right business model with
clarity on revenue earning capacities. Broadly, the aviation sector operates
under the two models- the low cost model and the full service model. There are
many operational and non-operational difference between the two models.
The ultimate aim of the full service legacy carriers is to
provide comfortable journey with air fares taking a secondary priority. Full
attention is paid to the comfort level of seats, meals and refreshments, scope
for entertainment and other such parameters which are lifestyle defining.
On the other hand, there are the low cost carriers, also
called the budget carriers, whose primary objective is to offer cheap airline tickets, with the most basic level of comfort and no frills. The emphasis is on
cutting down things while planning. There is a cut down on legroom, seat space,
complimentary meals, entertainment provisions and a range of other services
provided by the airline. This is done for giving the ultimate cut to the
airfares. This is how the cheap flight tickets are offered to the passengers.
In reducing the services to the bare minimum, mindful
execution of operational changes is done. This means that the comfort levels
will not be reduced beyond a point will not be done so that passengers stop
travelling in plane. So, the airline will not go for addition of more seats
beyond a point. Similarly, the flights have to be operated on short-haul routes
as people cannot be without meals on medium or long-haul flights.
Further, the airline might have to put restrictions on carriage of certain items in cabin, that are otherwise allowed by legacy carriers, for the risk of creating a mess that creates cleaning nightmare.
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