Mu Aooo

In: Historical Events

Submitted By buddy5386
Words 1965
Pages 8
AirAsia - Low-cost concept

http://www.airasia.com/my/en/corporate/irwhatislowcost.page

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What is low cost?
In this section, we address the following subjects: History of the LCC How LCC can offer such low fares? Why can’t the full service carriers match LCC fares? How low cost fares are structured Common misconceptions on LCC

History of the Low Cost Carrier (LCC)

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The LCC boom began about 36 years ago when Southwest Airlines roam the skies of USA. Rollin King and Herb Kelleher got together and decided to start a different kind of airline with four set of principles: fly one type of aircraft to keep down engineering costs; keep overheads down; turnaround aircraft as quickly as possible; and abandon loyalty or air miles schemes. They began with one simple notion: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares and make darn sure they have a good time in doing so, people will fly your airline.” And you know what? They were right. Southwest Airlines is now the third largest airline in the world in terms of number of passengers carried and also one of the most profitable airlines in the world. Southwest Airline’s success spruced up interest in the LCC concept to all corners of the world. LCC now commands approximately 30% market share of the domestic USA traffic. In Europe, the LCC phenomenon spread much later with Ryanair in 1991, but the growth has been at a much faster pace. Southeast Asia embraced…...

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