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European Full service versus low-cost operators

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European Full service versus low-cost operators

 

 

 

 

 

Compare the Operating characteristics of European Full service and Low-cost operators

 

 

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Introduction

The airline industry has gained much prominence over the years in the transportation sector regarding revenue generation among states. The industry mainly transports cargo and passengers from one nation to another. In respect to the above services offered, aircraft (airplanes and helicopters) has facilitated the operation. There are several categories of airline operations.

Nevertheless, the categories have been narrowed down to full service and low cost. European full-service operator is a European airline which as the word “full” suggests, offers a variety of services to its customers. The above operator typically guarantees a wide range of services to its customers. Services such as, entertainment when on the flight; baggage inspections; snacks; drinks (mainly beverages); and amenities such as pillows, and blankets. A fascinating fact about the above services is, they are all included in the ticket price. However, low-cost operators pride on the word “low cost” regarding the services they offer their passengers. The operator generally offers entirely distinct commodity on typically much shorter routes where the frills do not weigh much importance. It is accurately twenty years since the operator was established, which was the pursuit of implementing a viable airline. Large investors, as well as managers, have widely adopted the airline in some markets. Nonetheless, this research seeks to compare the operating characteristics of full European service and low-cost operators.

Discussion

European Full service operators

 

Cost of services

The European full-service operator operates on costly network connectivity. The above is true, based on how carriers must invest in different systems as well as a computer to enable fast and seamless communications among carriers. In respect to above, the airline requires a staff who has expertise regarding the nuances of the entire airline system. Other than competence requirement, the team must be in a position to take part in global forums relating to issues such as; acceptance of tickets issued by the distinct carrier and ascertaining the standard on luggage to be checked in the flight. The number of staff required is consequently huge, to enable curb irregularities that occur on a daily basis within the airline. The above irregularities range from, luggage that may go contrary to their expected destinations; as well as lack of adherence to rules relating to treasured pets. Network connectivity also necessitates coordinated timing of the massive number of flights, to reduce linkage times and increase the number of cities which can be linked in a particular bank of flights. Attaining the above level of connections is expensive.

Low-cost operator differs immensely from European full-service operator when it comes to cost. Maintaining a minimal cost has always been the primary order winning for the airline. The above winning factor is an operational element that will directly and importantly lead to winning of the business and giving the competitive edge. The affordable services offered by the airline gives it an upper hand regarding customer preference. Customers main reason for resorting to a low-cost operator is because they are cheaper compared to European full-service airline carrier.

The report drafted in the year 2012, indicated that the cost of fuel on the above operator aircraft is 50% of other carrier costs. Fuel happens to be the most vital and expensive cost, therefore minimizing the cost of fuel has always been the aim of a low-cost carrier. A perfect example of how it achieves the reduction of fuel objective is by reducing the weight of their airplanes. Low-cost operators also minimize their costs by utilizing secondary airports in major cities as their landing grounds. They make use of the facility because secondary airports impose lower administrative fees compared to primary airports.

Secondary airports are considered by low-cost carriers to be cheaper because they are much inclined to co-finance the promotion of new itineraries and usually provide quicker turnarounds because of the fewer locomotions. Nevertheless, they lack some essential airports to stay

Quality of service

European full-service operator offers a high standard of service to its customers. The type of service exhibited by the above operator is of high value, based on a frequency of their services as well as having enough capacity to carter for seat availability in rush hours. All credit rests on the shoulders of the governments, as the responsible party towards ensuring the European full-service operator offers quality service. European full-service airline fundamentally manages access to the above volume, to enable the high level of last-minute access to seats for travelers with unforeseeable travel needs. To maintain the image, as providers of high-level capacity and managers of quick access, the airline requires a lot of investment regarding finances.

A low-cost operator also provides quality service to their esteemed customers. Nonetheless, the airline’s primary focus is on meals; hygiene; efficient booking; handling of luggage; reliability and punctuality. The airline strives to achieve the above through minimization of delays and waiting times for passengers. Getting passengers to their destination on time has always been their principal objective. A perfect example includes, London Heathrow, which is established as the largest airport in the United Kingdom, lacks flight operated by the low-cost airline. The above results in problems for persons staying in London.

They achieve that by ensuring arrival to their destination a quarter to the stipulated time. Speed is another element which low-cost operator adopts to provide quality service is delivered to the customers. Generally, speed implies to the turn around the duration of aircraft ( airplanes and helicopters); and handling of luggage. Every low-cost airline would strive at their level best, to hasten the time. For instance, the quicker the travelers run via the terminal entrance, the earlier the flight can take off. It decreases the turn around time of the aircraft and saves a lot of money.

Conclusion

European full service and low-cost operator’s operation characteristics can mainly be compared under two spheres, quality of service offered and cost of service or operations. Both airlines provide quality service to their esteemed clients. Nevertheless, a difference occurs in their areas of concentration. European full-service airlines maximize on capacity and frequency of their services. The airline can secure seats for travelers who book last minute. Whereas, low-cost operator guarantees the quality of services regarding meals; hygiene; booking; luggage handling and punctuality. Cost of the airlines in their operation also differs significantly, because low-cost operator’s objective is to minimize its cost when operating and ensures that through, reducing fuel cost. European full service, on the other hand, works on the principle of providing maximum services, hence incurring various expenses such as; employing much stuff; installing numerous technology.

 

 

 

 

 

 

 

 

 

 

Bibliography

Alamdari, F. and Fagan, S., 2017. Impact of the adherence to the original low-cost model on the profitability of low-cost airlines. In Low-Cost Carriers (pp. 73-88). Routledge.

Bergantino, A.S. and Capozza, C., 2015. Airline Pricing Behavior Under Limited Inter‐Modal Competition. Economic Inquiry, 53(1), pp.700-713.

Burghouwt, G., 2016. Airline network development in Europe and its implications for airport planning. Routledge.

Fageda, X., Suau-Sanchez, P. and Mason, K.J., 2015. The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe. Journal of Air Transport Management, 42, pp.289-296.

Leong, L.Y., Hew, T.S., Lee, V.H. and Ooi, K.B., 2015. An SEM–artificial-neural-network analysis of the relationships between SERVPERF, customer satisfaction and loyalty among low-cost and full-service airline. Expert Systems with Applications, 42(19), pp.6620-6634.

Li, Y., Wang, Y.Z. And Cui, Q., 2015. Evaluating airline efficiency: an application of virtual frontier network SBM. Transportation Research Part E: Logistics and Transportation Review, 81, pp.1-17.

Pels, Eric, Nenad Njegovan, and Christiaan Behrens. “Low-cost airlines and airport competition.” In Low-Cost Carriers, pp. 125-136. Routledge, 2017.

Zhang, A., Hanaoka, S., Inamura, H., and Ishikura, T., 2017. Low-cost carriers in Asia: Deregulation, regional liberalization, and secondary airports. In Low-Cost Carriers (pp. 55-69). Routledge.

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