Low Cost Airline Impacts

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LCCs (Low Cost Carriers) first emerged in 1950, by the Pacific South Airlines started offering nothing but low prices on air travel. Followed by the great success of Southwest Airlines from 1967 onwards, as well as facilitated by the liberalisation in air transport market, it has been in centre stage of the global civil aviation industry ever since. In spite of facing many challenges such as high oil prices, softening demand, surplus capacity, new participants as well as subsidiaries from FCCs (Full Cost Carriers) have been joining the main stream to survive, compete and dominate in airline business, mainly on short-haul routes. Given it’s nearly 60% cost advantage (Doganis 2001), some of them did succeed, for example, Ryanair from…show more content…
This forces LCCs to look for somewhere else. The other one is the operating nature of LCCs. On one hand, the secondary airports generally have excess capacity in comparison to hub airports, which means less airport charges and easier access to airport facilities. This gives LCCs about 6% cost advantage over FCCs, according to Doganis. On the other hand, LCCs provide Point to Point service instead of Hub to Spoke adopted by FCCs, which means the airlines do not require the same level of airport services as required by FCCs. Rather, they demand high airport efficiency (less congested) to obtain high productivity (quicker turnaround).

While more and more people enjoy the low fares provided by LCCs, many environmentalists suggest that there is dear cost to the planet as a consequence. However, it seems to be a paradox.

On one hand, there are some environmental impacts caused by rapid development of LCCs. Given more destinations, more frequent and more passengers served by LCCs, it is obvious that there are more planes in the air, consuming more fuel, producing more emissions. Associated industries such as airport and aircraft manufacture, have to keep pace, even pace up. In contrast to aforementioned impacts to secondary airports, many hub airports have way exceeded their capacities. Many of them serve LCCs or tend to serve LCCs as a traffic feeder to FCCs. For
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