The “no frills” flight was popularized by Southwest Airlines in the U.S. and subsequently by the likes of Ryan Air and easyjet in Europe. Low Cost Carriers or LCCs as they are known in the industry became possible due to reconfiguration of their operating model to lower cost, such as point-to-point flights, disembarking on the tarmac and not the gate, use of secondary airports for lower access fees, standard planes, cooperative and non-unionized employees, outsourcing to reduce fixed cost, simple offices, use of IT for efficiency, bypassing travel agency channel, and increasing asset utilization by adding more flights per day benefiting from faster turnaround time per flight.
Gone are the days when airlines would offer hot meals in local flights to economy passengers. Nowadays, it is customary for airlines to sell snacks as part of their effort to raise revenues, as they compete in a red ocean of low prices. Other airlines resort to reducing complimentary weight of bags, still others impose luggage fee, fees for changing flights, upgrade fees, or higher prices for seats that have bigger leg space or that can recline more, part of ancillary fees that are increasingly becoming popular among airlines. Other types of ancillary fees include seats for the obese (counted as two seats), early boarding, advance seat assignment, seat with infant, and the list keeps getting longer. Read more