The document discusses low-cost carriers (LCCs), which are airlines that offer lower fares by reducing traditional services and charging for extras. It outlines the operational strategies of LCCs, their impact on aviation growth, and features of notable low-cost airlines like AirAsia and Indigo, including their market share and strengths. The document also highlights the historical development of LCCs and provides statistical insights into their expansion in the aviation industry.

1. LOW FRILLAIRLINES
(Case Studies)
Submitted By :
Vaibhav Makwana
MBA –TTM (2nd semester)
Dev Sanskriti Vishwavidyalaya, Haridwar

2. Introduction
• A low-cost carrier or low-cost airline (occasionally
referred to as no-frills, budget or discount carrier) is
an airline without most of the traditional services
provided in the fare, resulting in lower fares and fewer
comforts.
• A low-cost carrier or low-cost airline is an airline that
generally has lower fares and fewer comforts.
• To make up for revenue lost in decreased ticket prices,
the airline may charge for extras like food, priority
boarding, seat allocating, and baggage etc.
• The term originated within the airline industry
referring to airlines with a lower operating cost
structure than their competitors.

3. LCC Model
 Low Cost Carrier's commonly use one single type of aircraft which is small and
more fuel efficient such as Boeing 737 and Airbus A320 families.
 They tend to keep only single passenger class in the aircraft.
 In order to reduce the HR cost LCC's encourage their employees to work in
multiple roles. For Eg. Flight attendants may clean the aircraft or work as gate agents.
 Low Cost Carrier's charge for pillow, blanket, food, prior boarding, carry on
baggage or any extra comfort.
 Low Cost Flight's generate revenue by providing a-la-carte option and
commissioned products.
 LCC's do not provide any inflight entertainments, complementary toys, variety of
news papers and magazines etc.

4. Features of LCC
•Low price – the most obvious benefit to travelers who
can save between 50 – 80 percent on airfare, especially
when booking early.
•One-way tickets – some airlines charge extra for one-
way tickets; a number of low-cost airlines sell air tickets
a la carte, priced according to availability.
•Price benefits for traveling during off-peak hours or
red-eye flights.
•Frequent big discount promotions.

5. History
In the history of low-cost carriers, the American carrier,
Southwest Airlines, is considered the “parent” and its
business model has been copied by airlines around the
world.
The world's first low-cost airline was Pacific Southwest
Airlines, which started intrastate flights connecting
Southern and Northern California on 6 May 1949.
The first airline to offer cheaper transatlantic fares was
Icelandic airline Loftleiðir in 1964, often referred to as "the
Hippie Airline

6. Low Cost Carriers (LCCs) Statistics
•In 2015, the global aviation network carried 3.5 billion passengers on 34
million scheduled departures (preliminary figures).
• By 2030, current projections suggest those numbers will nearly double.
Low-Cost Carriers have played a major role in this extraordinary expansion
of aviation over the past quarter century, and there is every expectation that
they will continue to do so.
• Low-cost carriers carried 984 million passengers in 2015, which was 28 per
cent of the world total scheduled passengers.
•This marked a 10 per cent increase compared to 2014, which means Low-
Cost Carriers experienced a passenger growth rate that was about one and a
half times the rate of the world total average passenger growth.

7. o Air Asia
o Norwegian
o Easy Jet
o Jetstar Airways
o Air Asia X
o West Jet
o IndiGo
o Southwest Airlines
o Euro wings
o Scoot
o Ryan air
o Jetstar Asia
o Peach
o Jet2.com
o Vueling Airlines
o PAL Express
o Citi link
o Air Canada rouge
o West Air
o Nok Air
World's Best Low-Cost Airlines 2018

8. World's best long
haul low-cost
airlines 2018
------------
•Norwegian
•Jetstar Airways
•Airasia X
•Scoot
•Air Canada
Rouge
Best Low-cost
Airlines In Africa
2018
----------
•Mango
•Fast Jet
•Kulula
•Jambo Jet
•Fly540
Best Low-cost
Airlines In Asia
2018
------------
•Air Asia
•Indigo
•Jetstar Asia
•Peach
•PAL Express
•Citi Link
•West Air
•Nok Air
•Spring Airlines
•Spicejet
Best Low-cost
Airlines InThe
Middle East 2018
------------
•Fly Nas
•Fly Dubai
•Air Arabia
•Jazeera Airways
•Flyadeal
Best Low-cost
Airlines In Europe
2018
------------
•Norwegian
•Easy Jet
•Euro Wings
•Ryan Air
•Jet2.Com
•Vueling Airlines
•WOW Air
•Air Baltic
•Wizz Air
•Pobeda

9. Indian Aviation Industry Facts
 60 Million Passengers Served – 90 Million Domestic
Passengers/ 20Million International Passengers
 45 Million Tones of cargo handled
 Operations with 920 Airlines, @ 4200 Airports, with 27000
Aircrafts.
 Inbound Air traffic from 87Foreign countries.
 Outbound Air traffic to 40countries.
 International Passengers growing at CAGR of 14%.

10. •Air Asia Airlines
• Headquarters : Sepang, Selangor and
• No. of planes (including Joint ventures) : 78 planes
• No. of employees : 3,000 employees
• No. of customers : 16,000,000 per year
• Turnover per annum : $60,000,000 product,
embracing
• Maintain the highest quality technology to reduce
cost and enhance service levels.

11. Objectice
• AirAsia To be the largest low cost airline in Asia and
serving the 3 billion people who are currently
underserved with poor connectivity and high fares.
• Asias leading airline.
• In 1993 with the dream of making flying possible
• Safety First, Low Fare and No Frills
• Lean Distribution System and Point to Point Network
• Transparency

12. Air Asia Airlines over the
years
Dates &Year Milestone
1 18 April 2002 AirAsia became Asia’s first airline to go
ticketless.
2 10 May 2002 It introduced its first online booking.
3 19 August 2003 It introduced world’s first SMS booking.
4 8 December 2003 It’s first international flight took off to
Phuket.
5 8 December 2004 It announced a joint venture with PT
AWAIR of Indonesia.
6 21 February & 29 March
2005.
Launched Go-Hostel & Go-Car
7 Year 2007 The lowest cost in theWorld, 51 000
passengers per day, 54 planes.
8 Year 2008 Launch of Air Asia X.

13. Indigo Airlines
• Launch: November 2005
• Headquartered at Gurgaon, Haryana, India. It is the
largest airline in India in terms of passengers carried,
with a 42.6% market share as of October 2016.
• The airline operates to 41 destinations and is the second
largest low-cost carrier in Asia.
• It has its primary hub at Indira Gandhi International
Airport, Delhi.
• The airline was founded as a private company, by Rahul
Bhatia of Inter Globe Enterprises; and Rakesh Gangwal,
a United States-based expatriate Indian; in 2006.
• The company went public in November 2015.
• It took delivery of its first aircraft in July
2006 and commenced operations a month
later. The airline became the largest Indian
carrier in terms of passenger market share
in 2012.
• 8 Facts and Figures
• consecutive years of profitable
operations
• Market share of 42.1% as of
November, 2016
• Fleet of 126 aircraft including 14 new
generation A320neos.

14. Strategies Adopted By Indigo Airlines
•Indigo's stuck to its low-cost, single class model
•Selling and leasing back planes helps its balance
sheet
• Quality and detail key to good service
•Concentrated customer focus
•Using Smart Technology

15. SpiceJet Airways
• SpiceJet is an Indian low-cost airline. It is the country's fourth
largest airline by domestic passenger share.
• Founded: 2005
• Commenced operations: 18 May 2005
• Fleet size: 61
• Destinations: 51
• Company slogan: Whatever We Do, We Do It With All Our
Heart
• Headquarters: Gurgaon, India
• Employees: 4,500
• Website: spiceJet.com

16. WEAKNESS
•Low market share due to presence of significant
competition
• No international destinations
• Dependency on leased assets
• Small load deficiency compared with competitors.
STRENGTH
• Entered with RS 99 fares for the first 99 days
• Strong backing by the promoters
• Having more than 35 destinations in India
• Good presence in the market due to its branding and
advertising
Swot analysis
OPPORTUNITIES
• Growing population for
• demographics
• growing interest on tourism
• Growing aviation market
• International tie ups would boost brand image
THREATS :
• Rising fuel cost
• strong competition
• changing government policies

17. India World

18. Thank you