Comparison of Low-cost Airlines in the US and Europe

2862 words (11 pages) Essay in International Business

08/02/20 International Business Reference this

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The low-cost airline in Europe VS low-cost airline in the US

Summary

The current study has a much wider comparison between European and United States airlines such as Viva Aeroline, Sun Country Airline, Spirit Airline, Frontier Airline, and Air Transat. These airlines are working as low prices of the ticket by America and on the other side European airlines are following Wizz Air, Ryan Air, EasyJet, Wow airline and Norwegian Airline.

As per whole discussion airlines of both side like European and America has cheap ticket price because most of the airlines working between Europe and America that is why people try flight that providing fewer prices. In most of the American airlines have more than 3000 employees and huge network across the U.S and to European countries. On the other side Europe has a much wider area where any numbers of countries are there then a huge number of people move from one place to another.

These above-explained airlines are competitive with each other in some places where they have the best prices for the customers because each of them wants to achieve more share in the market and best services award. Three major goals of this airline such as best ticket prices for all. Be the preferred airline and sustainability in prices and market share. Currently, Wow airline growing rapidly along with the lowest price since inaugurated in 2012. Low fare is very important but the only low fare is not enough also needs to make the best commitment for people. This airline has many types of fares and flights that focus on all type of customer class.

Comparison

Many intercontinental flights working from America to Europe and Europe to America and usually in a day, a huge number of commercial flights (30,000) fly in the airspace of Europe either takeoff or departure from Europe. In the current situation, Europe is highly connected with the other nations where have cheap fare among the different destinations. Currently, more than 230 million people are traveling to Europe in each year and from these almost 30% are traveling on the cheap fare (GoEuro, 2018). Every people want to get low prices for travel and in the United States, many low-cost airlines are available.

There are many airlines in Europe and the United States those have less fare for the customers and this study will cover all the things related to airlines and make a comparison between top low-cost airlines. The current study will discuss 5 airlines from Europe and the United States and will explain each and everything regarding ticket fare. Europe has these are following five airlines that will compare with United States airlines such as, Norwegian Air, Wow Air, EasyJet, Ryanair, and Wizz Air. On the other side airlines of United States are following, Air Transat, Sun Country Airline, Frontier Airlines, Viva Aerobus, and Spirit Airlines. Currently, we are going to explain some European low-cost airlines and then we will go to the United States airlines.

Norwegian Airline

The Norwegian Airline offers reasonable fares for all customers to achieving top priorities and goals as well. Three major goals of this airline such as best ticket prices for all. Be the preferred airline and sustainability in prices and market share.

Along with these three objectives airline also has three priorities that are Safety, simplicity, and service, as well as three main values of airlines, are innovation, teamwork, and simplicity.

For best fare, the airline is offering competitive low fares and provide best quality services and for the sake of this purpose, airline maintains low operating cost. Due to low operating cost ticket fare will also low because the airline has less expenditure. The Norwegian airline has different types of tickets such as low fare, low fare+ and Flex under excl. international long haul. In these types under low fare, one person can carry one bag up to 10 kg and Wi-Fi. In the second category Low Fare+ anybody can carry one bag with one checked bag up to 20 kg and along with this seat reservation and Wi-Fi. 

Under international long haul-premium cabin exist two types such as premium and premium flex. This airline was started in 1993 and now in 2018, this is count in one of the lowest price such as this is most efficient airline in term of fuel on transportation routes by the international council on clean transportation (Nowegian, 2018).

Wow Airline

Wow, air is a best low fare long haul airline that is based in Iceland. Currently, this airline is considering one of the lowest fare airlines that were established in 2011 and now covering 36 destinations across Europe, North America, and Asia. Wow, air has clear objectives about the low fare from and to Iceland and across the Atlantic with special services. Currently, Wow airline growing rapidly along with the lowest price since inaugurated in 2012.

In 2013 airline carried out almost 400,000 guests and more punctual in term of time and the target of the airline is very clear such as will grow from 2.8 million in 2017 to 3.6 million in 2018. 

Current employees of Wow are 1500 that are working with full dedication because most of the employee has extensive experience in the tourism industry as well as the airline industry. Wow has 3 Airbus A320, 14 aircraft A321, and 3Airbus A330. The A320 is much perfect airbus for short routes between Europe and Iceland.

EasyJet

This airline has clear mission and objective regarding the customer facilitation such as easy travel and affordable. Airline keeping fare in control as possible and provides best services on consumer demand. EasyJet has some fixed administration fee on per booking is 16 pounds and along with this if anyone wants to buy a ticket by credit cards then the airline will charge zero extra charges. Along with this, the airline also has not any charges if anyone book ticket by debit card as well as airline has 25 pounds fee on per infant. 

This Airline giving special services to clients such as booking in a group where anybody can book a seat for other and can add the name of the passenger later. Current ticket price has the inclusion of all types of taxes that go directly to the government and other than this price not any single tax will charge from the customer. The airline charging ticket prices according to customer demand as well as operational cost and other than that airline not charging any other airport and security charges.

The airline knows anybody can change their plan according to the situation and according to this situation if anybody changes their plan then under 24 hours airline will refund their price other than administration fee. This airline has another special offer for customers like if any passenger wants to change their flight time then he can do but before two hours from the original flight time (EasyJet, 2018).

Ryan air

Ryan air has many types of plans for travel such as Plus, Family plus, flexi plus, group travel, Erasmus discount, myRyanair, and Ryan air app. Ryanair has cheap fare for almost 200 destinations and most effectively we can see from Dublin to anywhere only in 150 pounds. This airline has some extras for customers such as anyone can allocate their seat and along with this cabin bag policy. Any passenger can use facilitation of fast track as well as the airline has gift pack like Ryanair gift voucher (Ryanair, 2018).

Wizz Air

This airline was established in the year 2003 with six people those had expertise related to airline and only in three months this airline was ready to fly. On 19th May 2004 first flight took off from Katowice and currently, Wizz Air has more than 600 flights routes that based on 25 regions. In last one decade airline has grown much and become the low-cost airline of Central and Eastern Europe. Due to this success in 2015 Wizz airline has admitted to the London stock exchange and currently listed under LSE and has more than 3000 employees. 

Wizz airline belongs in the best-known airlines that offering best services to the customers in term of affordable for the citizens of the CEE and side by side providing trying to provide new travel experience to all travelers in the EU.

 Wizz air has single type Airbus fleet from the A320 family that also included A320s and A321eco as well. As per wiz air policy about the low cost, the company has an order for new Airbus 110 as well as new technology A321 new craft that has latest technologies. Due to this technology engine will work very efficiently that is why Wizz air focusing on these crafts for the sake of low cost.

The airline has a simple way to buy a ticket on an effective low price, where anybody can buy through online, through a mobile app and call Centre. Airline charge an only one-way price that included all types of tax, administration and other operational costs. Other than that price, airline not charging any type of extra charges from the customers. The airline accepting payment through many ways such as credit card, debit card, via bank transfer and using the balance on your Wizz account (Wizz Air, 2018).

Now we are going to explain airlines of the United States,

Air Transat

 Air Transat is one of the leading airlines that currently takes care of 4.5 million passengers every year and covers 60 places in huge number of countries like 26. This airline has more than 3000 employees that operate a fleet of Boeing narrow-body and airbus-wide.

Along with these things in the year 2017 Air Transat was certified as the second best airline in time of leisure all over the world and in North America in the same category for the six consecutive years.

Air Transat is a business unit of the Transat A.T. Inc. that integrated with the tourism side and active in term of transportation, accommodation, travel package and distribution. In 2016 Air Transat awarded as a partner in recognition and commitment to sustainable development. Along with this thing, Air Transat is very careful about environmental degradation, host communities, cultural diversity and relation with the employees. Due to these things, airline adopted corporate social responsibility policy in 2008 where Air Transat committed to declining in ecology footprint and for the sake of this airline adopted an environmental policy with low cost.

The company has a world-class fleet with efficient cost such as Airbus A310-300, Airbus A321-200, Airbus A321-200, and A330-200 etc.

Frontier Airlines

Airline committed to delivering “low fare done right” because airline knows about low fare is very important to capture the share market. Traveling not only for the rich people that should be for each and every one and these low prices will allow people to travel more and more.

When airline providing low prices for all the customers then people will willing to see a new place in all over the world as well as connect to family. The airline believes in the hard work that is why this airline growing very fastly because due to low fare everybody will save money on each flight.

Low fare is very important but the only low fare is not enough also needs to make the best commitment for people. This airline has many types of fares and flights that focus on all type of customer class. This airline was headquartered in Denver, and this time this airline services in more than 100 cities of the America, Mexico, Canada, Jamaica, and Rico etc.

Currently, more than 3000 workers are working for the best results and airline gets Diamond award in 2015. At this time this airline also focuses on the efficient and currently named the company is more efficient airline in term of fuel ICCT.

This airline has low fare nationwide where they cover almost 90 percent part of America with low fares done right. Under this fare, millions of American can pay this low price and millions of people traveling every year (Frontier , 2018).

Spirit Airlines

This airline is committed to providing low fare ticket for many places and on average this airline has a lower price than other airlines. The airline has a clear objective to provide best rates where people will save money and travel more. Currently, Spirit Airline operates 400 flights on daily basis as well as this airline covers a huge number of places in U.S. like 60. Spirit has much more features such as low ultra-fares, providing booking facility by online and check-in, reliable and on time services, clean, fuel-efficient airplanes, friendly staff, Dulexe leather seats, one personal item and largest ULCC network in the US. Spirit airline has special optional services and products such as big front seat like wider seat with extra legroom, carry-on and tested luggage (Spirit, 2018).

  Sun Country Airline

 This airline is started in 1982 and that time it was a small group because very few people will fly. After some months, the world had seen the first appearance of flights with low prices. After that they started many new routes across the U.S., taking new routes especially for vacations. Currently, this is award-winning airline that covers all popular destination across the U.S and currently in November 2018 Sun country airlines started a new flights from Nashville to Warm weather across the country and day before that airline started a new route such as from Portland to Warm Weather Getaways across the West Coast (Sun Country, 2018).

 Viva Aerobus

Viva Aerobus is based on Latin America lowest cost airline and has the youngest fleet in the region. One decade before some people are afforded air travel and that time people were using cheaper other routes such as bus and train. In November 2006 airline was started the first flight and currently, they are demanding lowest price in this industry. Currently, the airline has 1100 employees and 115 daily operations on 60 routes. Along with these things the company has a clear vision like that to be preferred airline for all with the much lowest cost and profitable for America as well (Viva Aerobus, 2018).

 Conclusion

The current study has a much wider comparison between European and United States airlines such as Viva Aeroline, Sun Country Airline, Spirit Airline, Frontier Airline, and Air Transat. These airlines are working as low prices of the ticket by America and on the other side European airlines are following Wizz Air, Ryan Air, EasyJet, Wow airline and Norwegian Airline.

As per whole discussion airlines of both side like European and America has cheap ticket price because most of the airlines working between Europe and America that is why people try flight that providing fewer prices. In most of the American airlines have more than 3000 employees and huge network across the U.S and to European countries. On the other side Europe has a much wider area where any numbers of countries are there then a huge number of people move from one place to another.

These above-explained airlines are competing with each other in some places where they have the best prices for the customers because each of them wants to achieve more share in the market and best services award. Three major goals of this airline such as best ticket prices for all. Be the preferred airline and sustainability in prices and market share. Currently, Wow airline growing rapidly along with the lowest price since inaugurated in 2012.

Along with this, the airline also has not any charges if anyone book ticket by debit card as well as airline has 25 pounds fee on per infant. This airline is committed to providing low fare ticket for many places and on average this airline has a lower price than other airlines.

Bibliography

  • EasyJet. (2018). EasyJet. Retrieved from https://www.easyjet.com/en/terms-and-conditions/fees
  • Frontier . (2018). Frontier. Retrieved from https://www.flyfrontier.com/about-us/low-fares-nationwide/
  • GoEuro. (2018). https://www.goeuro.com/flights/. Retrieved from GoEuro.
  • Nowegian. (2018). Nowegian. Retrieved from https://www.norwegian.com/us/about/our-story/year-by-year/
  • Ryanair. (2018). Ryanair. Retrieved from https://www.ryanair.com/gb/en/
  • Spirit. (2018). Spirit. Retrieved from https://www.spirit.com/
  • Sun Country. (2018). SunCountry. Retrieved from https://www.suncountry.com/About/News.html
  • Viva Aerobus. (2018). Viva Aerobus. Retrieved from https://www.vivaaerobus.com/en
  • Wizz Air. (2018). Wizz Air. Retrieved from https://wizzair.com/en-gb#/
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