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Low Cost and Scheduled Airlines - Case Study Example
This essay is a comparison between low cost airlines that provide low fares but without the traditional passenger services and the scheduled airlines that provide all the passenger services but at a high cost plus they provide to individuals, families or groups etc…
The core benefit of this service is that it's a cheaper way to travel and it began in the USA mainly to maintain a low cost structure compared to the competitors. Their main aim is to have the lowest cost structure and they charge for the food ordered during the flight. The actual product includes the packaging, branding, quality, features and design. The low cost airlines are a service so it does not have packaging but branding is essential for any company to instigate brand loyalty and to attract customers. Branding is essential to create high brand equity in the market since the more powerful and valuable a brand is the more will increase the market share. Quality can be an issue in this case because all they provide is a safe flight and food that might not be up to higher standards. When they do not provide passenger services then quality is of question here but people mainly come to them for cheap fares and they are not concerned with the other services. These airlines provide single passenger class only. Finally, the augmented product includes delivery, warranty and after sales services. Low cost airlines deliver at cheap prices without much of services to attract the masses and they do not provide much of the after sales services but the delivery of the product is equal to the expectations of the consumers since they want cheap fares.
On the other hand, scheduled airlines are e ...