Brief History of Low Cost Airlines (including dis/advantages)

03 Jul

To begin, low cost airlines are considered “No-frills”. No-frills means only the basics, with nothing fancy added as an extra. In 1990, inspired by Southwest Airlines, Michael O’Leary and Stelios Haji-Ioannou jumped on the idea of a low cost airline. The founder of Ryanair, Tony Ryan, was desperate to save his small airline and sent Michael O’Leary to the United States of America to see how the American’s were making Southwest Airlines work. So, a new no-frills airline was born in Europe and is still successful to this day. Stelios Haji-loannou created easyJet, one of the leading competitors to Ryanair.

Aer Lingus and Ryanair

Willie Walsh, previously chief executive of Aer Lingus, now works at British Airways. Aer Lingus was bought by Ryanair. Apparently, Aer Lingus could not figure out how to disembark passengers, reload passengers, and be up in the air at the same speed as Ryanair so they spied on their competitor for a day. The major airline in Germany is Lufthansa. They too, underestimated Ryanair. With colorful speech, Michael O’Leary led Ryanair to bringing in the largest aircraft Ireland had ever purchased to Germany.

Advantages of No-Frills Airlines

Now, with no-frills airlines losing profits, some extras have been added. The scene is reshaping to include easier access to purchasing tickets, benefits for frequent fliers, but still remaining low cost. The advantage of having a no-frills airline is cost effective flights. Even the poor can get to where they are going, even if it is in another country. The disadvantage of a no-frills airline is that the service may be poor, especially considering this industry is on the verge of evolution. It is a young industry with room for growth, expansion, and a better understanding of the business.

The Industry is On the Edge of Evolution

The question becomes: “Are these flights still considered no-frills airlines?”. Well, as stated before, the industry is on the edge of evolution. The no-frills airlines have begun to encroach on major airports and cities and are beginning to include small amenities, all at a low cost. There is now a system within the usual boundaries of coach and first-class on commercial airlines to compete with low cost airlines. What will the no-frills airlines do to compete with commercial airlines? How will the commercial airlines respond? The next few years will create a new system of flights, all in the hopes of getting people to where they need to go for a profit.

Commercial Flights Compete with Low Fare Airlines

A plus to this situation is that as commercial flights compete with low fare airlines and vice versa, new options will expand into more new options and at competitive prices. These options will open up a new era of airplane flights, hopefully with enough options to accommodate anybody that needs to fly and also, will promote more jobs, more wealth, and more culture to more people. Easier access to different places promotes the economy and promotes a sense of adventure for people who cannot afford many things. The low cost airlines have created a new generation of exploration and growth for not just people but for businesses too.

Note: We are not associated with Ryanair Mag in any way, except that we fly it a lot and are part fans and part critics.