Trends in the past 2 decades have all shown of a constant and almost fierce growth in these low-cost airlines and it looks like they will continue this growth. The world is becoming more open for trade tit international trade barriers falling at a steady pace and this has much to do with the growth of these new airlines. An easy to see example can be seen clearly when comparing the growth of these airlines In comparison with the expansion of the E In 2004 (Sullivan, 2005).
The enlargement of the European union on 1 May 2004 gave Randal and other low-cost airlines to tap Into the markets of the E accession countries and within less than a year Randal ordered another 70 Boeing 737-ass’s and forecasted to Increase its passenger numbers from 34 million In 2005 o 70 million in 2011, more than doubling its passenger numbers in just 7 years after being in business for 20 years (Nook, 2011). This trend in growth can be compared to when the new airlines with innovative business strategies entered the market in the US after the deregulation of the industry in 1978.
A safe bet to make with these airlines is that not all of them will survive in this strategy as it is the case in the US. With Southwest being the most successful by far in the low-cost strategy and others failing at some point. It can be seen happening right now In the European market here the UK and Ireland markets are being saturated and the new entrants may not survive. The profitable advantages low-cost carriers enjoy over the traditional carriers range from cost cuttings In aircraft design to the services they provide.
For example Ryan’s Boeing 737-cays are custom ordered to have non-recycling seats made of synthetic leather with no seat-back pockets and life jackets stowed overhead rather than the traditional under the seats placement. This design is cost effective in manufacturing and also allows faster cleaning and faster safety checks (Hallstead, 2004). Other steps include removing two of the toilets to add six iodination seats (Hallstead, 2004).
Ryan, as with many other low-cost carriers, charges fees for the services they provide on board such as on board refreshments, charging extra for overweight passengers and even suggested to charge passengers for using the toilet. Overall customers have a better experience in flying on traditional carriers than low- cost carriers. Other significant operational differences that can be seen are flying point-to-point rather than the traditional hub and spoke system and flying Into non- ajar airports that are closer to the major hubs.
