What is the competitive advantage of low-cost airlines?

Marketing and human relations: Since LCCs offer lower fares, it requires lesser marketing efforts to sell tickets. Most of the tickets are sold directly through websites which saves commission costs on sales through travel agents. LCCs also have lower labor costs compared to the legacy carriers.



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Low-Cost carriers have tremendous success in Aviation. By running a single type of planes, online direct distribution system and often landing at secondary, less crowded airports, LCCs kept the operating cost to the minimum. Their achievement is up to the level that legacy carries considering them as a threat.

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Low-cost airlines target cost-sensitive leisure travelers, offering the lowest prices.

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Budget airlines have newer and more uniform fleets These newer planes are not only faster, more reliable and require less maintenance, they also tend to be much more fuel-efficient. Fuel efficiency is obviously a huge money saver, especially for medium- and long-haul flights.

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