Scribd
Upload
251 views3 pages

Airline Business Models Explained

1. There are three main types of airline business models: full-service airlines, hybrid airlines, and low cost airlines. 2. Full-service airlines offer amenities like meals, baggage, and premium seating but have higher ticket prices. Low cost airlines have extremely low ticket prices but charge fees for amenities. 3. Hybrid airlines take a middle approach, offering some amenities and a basic product at lower prices than full-service airlines to attract cost-conscious customers but maintain reliability and quality.

Uploaded by

Adli Syahmi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
251 views3 pages

Airline Business Models Explained

1. There are three main types of airline business models: full-service airlines, hybrid airlines, and low cost airlines. 2. Full-service airlines offer amenities like meals, baggage, and premium seating but have higher ticket prices. Low cost airlines have extremely low ticket prices but charge fees for amenities. 3. Hybrid airlines take a middle approach, offering some amenities and a basic product at lower prices than full-service airlines to attract cost-conscious customers but maintain reliability and quality.

Uploaded by

Adli Syahmi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

1.

The difference between airline business model:


 Full-service airline
 Hybrid airline
 Low cost airline

Full-service Hybrid airline Low cost airline


airline
Fare The majority of the used to separate low-cost Low Cost Carriers
structure FSCs have not carriers with a low standard are huge on
used the reduction of service (ultra-low-cost reducing costs to
of the flight and carriers) from low-cost- the bare minimum
cabin crew to low carriers that offer a better and making people
costs; instead standard of service (hybrid believe (rightfully,
crews have to airlines). in most cases) that
work early flights they are being
from other offered the lowest
countries or local fare possible on a
flights to reduce given route.
accommodation
cost away
Configuration Full-service offering quality services in the No baggage (or
offered airlines offer airports, for example on the very limited
passengers the entertainment segment baggage) included
choice of economy in the airfare. This
or business class offer flexibility as well as means that
travel and on some operating on main airports passengers
flight’s premium while offering a basic inflight generally need to
economy and first product. The company pay additional fees
class compensates the basic to have their
product with the reliability, on- luggage
A full-service time performance, security, transported with
airline typically key quality elements that are them.
offers passengers considered by every
inflight passenger when choosing an In-flight meals.
entertainment, airline There will be none
checked baggage, served “for free”
meals, beverages (meaning included
and comforts such in the airfare).
as blankets and Rather, many
pillows in the ticket meals and drinks,
price. including alcohol,
are available for
purchase during
flight at prices
significantly
exceeding typical
market value.
Aircraft Different aircraft TNT Airways is one example. LCCs use a
Utilization types, from small The Liège-based carrier uses younger
regional feeder one Boeing 737300QC homogenous
aircraft to aircraft for passenger medium sized fleet
B747/B777/ charters, allowing the airline which means lower
A340/A380 long to maximise aircraft utilization fuel, lower costs
range widebody as integrated cargo flights for maintenance
aircraft usually take place at night, and training one
while passengers prefer to fly single class of
during the day. French service with higher
Europe Air post (now sold to density of seat
Air Contractors and point to point
rebranded as ASL) offered network
similar kind of services in
operating Boeing 737s during
the night for La Poste
(France) and during the day
for various passenger
charters.

Operation Model

Full-service carrier
Low Cost Carrier

Hybrid Airline

In fact, a hybrid airline has adopted a current business model that comprise the best
features of both the legacy and low-cost business models in one, balancing costs
(known to be the focus of the LCCs) and value (known to be the focus of full-service
carriers).

You might also like