and Europe tourist trade, where travelers are more affected by high oil prices than are local travelers. Low-cost airlines have been able to supply routes previously unserved or underserved by traditional network airlines, with local customers taking advantage of low cost. What are the factors that allow an airline to compete successfully with ticket prices It is necessary for an airline like Air Arabia to look to their competition and find ways to offer lower prices than any other airline and still maintain customer satisfaction (Sector; Air).
1. "No frills" services such as not serving food on board or by charging customers for food and drink. Air Arabia maintains competitive pricing by offering a single class with a simple fare structure, and by charging money for on-board food, drinks, and headsets through agreements with various companies to sell consumer items on board, thereby providing a good complimentary income to the low cost model. By focusing on short direct flights, it might not even be necessary to offer food at all (Air 19).
3. Creating package deals through cooperation with hotels and car rental companies.