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Low-Cost Airlines

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by

Marissa Putri

on 15 May 2011

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Transcript of Low-Cost Airlines

PROS AND CONS THE PROS ARE WHILE THE CONS ARE 1. CHEAP! Well that is why they called themselves as a low-cost airlines 2. Quick and convenient to book online A couple of clicks and you’re done Cheap tickets availabe!
CLICK NOW! www.ticketsonline.com 3. You only pay for what you want Short flight? No food, no drink = no problem Longer flights? No food, no drink = a problem 1. Cancellations are common and passengers will not automatically be rebooked 2. Additional charges mount up and make cheap flights far less of a bargain than they appear to be Rp xxx ++*

*additional charges for optional insurance, checked luggage, overweight luggage, priority boarding, etc = $$$$$$$$ 3. They tend to fly at less popular hours 4. Remote airport to keep their costs low, budget airlines usually service smaller airports in remote locations. 5. No refunds policy 6. Baggage restriction Most budget airlines allow 15kgs of luggage 7. Possible delays from turnaround flights go back and forth on the same route several times a day. As the day progresses, small delays can accumulate into running an hour or more behind schedule 8. No transfer between flights Point-to-point only 9. Minimal compensation if flight canceled 10. No seat allocation 11. Unproven reputations A budget airline flying over Phuket, Thailand has crashed leaving 88 people dead. Low-Cost Airlines Ade Bimi Malidianti Dimas Yusuf Ceryl Adinda P Marissa Putri Pandji Caraka Djani OVERVIEW Introductory History & Profile Revealing the Secrets Pros & Cons Valuable Tips Valuable Tips Cheapest day to fly Best time to order airlines tickets When it comes to pick the Low-Cost Airlines… 1. Wednesday! 2. Followed by Tuesday and Thursday 3. Saturdays are also good days to fly 4. the first flight out in the morning 5. flights during or after lunch and flights at the dinner hour as the average traveler is still enjoying their weekend 1. Sunday night Everyone are returning from their weekend getaway 2. Monday morning Those who took a long weekend will now be traveling 3. Friday The masses off for the weekend will push the prices up 1. Between 3 months and 2 weeks before the flight date 2 weeks before the flight date the ticket price will start to sharply increase 2. A Tuesday afternoon offers the lowest prices Airlines start to compete with sales prices advertised by their competition for 3 days 3. For online order, the best time to order is the afternoon Most businessman order tickets for business trip at the morning 1. Check the record about the airlines’ performance 2. Beware of fake travel agent or brokers 3. Check the additional cost which is not included in the fare (baggage, airport tax, etc) 4. Avoid bringing unnecessary stuffs 5. Make sure it is going to be landed at the right airport most of cheap tickets are landed in secondary airport 6. Have an enough eat and drink before the flight Or at least prepare a sufficient cash money  The Secrets: Revealed! Introduction High demand for low cost airlines Changes in travelling trend What’s important? Why it’s important to us? 1. The number of low cost airlines is increasing 2. How they survive in the airlines industry 3. How they compete with other low cost airlines 4. Who are their target market 1. It is an economic phenomenon 2. To analyze how those company manage their cost 3. To analyze how those company set their product standard 1. They use less paperworks Low-Cost Airlines often sell their tickets via Internet: Less people in it, almost no offices needed, less paperworks = lower operating cost! 2. They buy their landing rights only for cheap ‘second alternative’ airports = it saves them a lot = keeps the cost low! 3. Keep their ‘cost per available seat-kilometre’ low While trying to keep their ‘revenue per available seat-kilometre’ high for higher profit. 4. They use second hand airplanes 5. Their aircrafts spend less time in airports between flights It means lower airport charges 6. They employ less cabin crews Their crews often multitask 7. They have their own facility to train pilots, crews or so April 2011 Mon Tue Wed Thu Fri Sat Sun 1993 AirAsia was established.
AirAsia is a Malaysian based low cost airline December, 2nd 2001 Bought by Tony Fernandes’ company Tune Air Sdn Bhd 2003 AirAsia opened its second hub at Senai International Airport, Johor Bahru and started its first international flight to Bangkok New destinations were introduced such as Indonesia, Singapore 2003 2004-2005 Flights to Macau, China, Phillipines, Vietnam, and Cambodia started September, 27th 2008 It was announced that a total of 106 new routes to be added to the current 60 over the next few days Subsidiaries of AirAsia 1. Thai AirAsia: Established Dec 8th 2003
2. Indonesia AirAsia: Dec 1st 2005
3. VietJet AirAsia: February 2010
4. AirAsia Phillipines: Mid 2011(expected) 2004 Valuair is a Singapore based low-cost carrier. It is the first low-cost airline to begin operations in Singapore funded by local businessman and has the expertise of an ex Singapore Airlines employee as its chief executive July, 24th 2005 Valuair and Jetstar merged to form Orange Star 2005-2008 Valuair flew twice daily from Singapore to Jakarta, and as of February 2008 it has been increased to 4 times a day 2005-2008 Daily flights from Singapore to Surabaya was added while flights to Hongkong were suspended 2005-2008 Valuair flew weekly 3 times per week to Denpasar. As of 1st February it has changed to 4 times per week Today Valuair today only flies to Indonesian destinations. Today Because of the rejection of Indonesia AirAsia application to fly to singapore, Valuair is the only low cost carrier of Singapore and Indonesia that can cross the border. SURVEY! Thank you for your attention!
And we wish you a safe and pleasant flight
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