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A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline) is an airline that generally has lower fares. To make up for lost revenue, they charge for extras e.g food, priority boarding, seat allocating, baggage etc.

The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. While the term is often applied to any carrier with low ticket prices and limited services, ...
 
 

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regardless of their operating models, low-cost carriers should not be confused with regional airlines that operate short flights without service, or with full-service airlines offering some reduced fares.

Business model

Low-cost carrier business model practices include:

  • a single passenger class
  • a single type of aircraft (commonly the Airbus A320 or Boeing 737 families), reducing training and servicing costs
  • a minimum set of optional equipment on the aircraft, further reducing costs of acquisition and maintenance, as well as keeping the weight of the aircraft lower and thus saving fuel:
    • no AVOD etc.; often excluding conveniences such as ACARS and autothrottle
    • no in-flight entertainment systems made available
    • no seat recliners, seat pockets, window blinds or seat headrest covers

    Not every low-cost carrier implements all of the above points. For example, some try to differentiate themselves with allocated seating, while others operate more than one aircraft type, still others will have relatively high operating costs but lower fares.

    The price policy of the low cost carriers is usually very dynamic, with discounts and tickets in promotion. Even if the advertised price may be very low, sometimes it does not include charges & taxes.


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