A low-cost carrier ( LCC ) or low-cost airline , also called a budget , or discount carrier or airline , is an airline that is operated with an emphasis on minimizing operating costs. It sacrifices certain traditional airline luxuries for cheaper fares. To make up for revenue lost in decreased ticket prices, the airline may charge extra fees, such as for carry-on baggage.
109-661: InterGlobe Aviation Limited ( d/b/a IndiGo ), is an Indian low-cost airline headquartered in Gurgaon , Haryana , India. It is the largest airline in India by passengers carried and fleet size, with a 63.3% domestic market share as of October 2024. It is the largest individual Asian airline, and one of the largest in the world in terms of passengers carried, with more than 100 million passengers carried in 2023. As of November 2024, IndiGo operates over 2,000 daily flights to 122 destinations – 88 domestic and 34 international, with
218-415: A Boeing 777-300ER to its fleet. In June 2023, the airline placed an order for 500 Airbus A320neo family aircraft, making it the largest aircraft order in commercial aviation history. As of November 2023, IndiGo had a 61.8% domestic market share. In December 2023, IndiGo became the first Indian airline to have ferried more than 100 million passengers in a calendar year. In April 2024, IndiGo formally entered
327-426: A cost of available seat mile (CASM) advantage in relation to the traditional and established, legacy airlines such as Trans World Airlines and American Airlines . Often this CASM advantage has been attributed solely to the lower labor costs of the newly hired and lower pay grade workers of new start-up carriers, such as ValuJet , Midway Airlines, and their like. However, these lower costs can also be attributed to
436-452: A ₹ 30 lakh (US$ 36,000) fine on IndiGo for certain systemic deficiencies concerning documentation pertaining to operations, training, and engineering procedures. As of September 2024, IndiGo operates more than 2,000 daily flights to 122 destinations, 88 in India and 34 abroad. Its main base is located at Delhi , with additional bases at Bangalore , Chennai , Hyderabad , Kolkata , Mumbai , and Kochi . In January 2011, IndiGo received
545-467: A "Smart-Lav" modular lavatory design – allowing an in-flight change of two lavatories into one accessible toilet . The "Cabin-Flex" configuration for the A321neo allows up to 20 more passengers without "putting more sardines in the can" by rearranging the door layout of the aircraft. Total fuel consumption per seat is reduced by over 20%, while the rearranged cabin allows up to nine more passengers for
654-590: A $ 49 million value, rising by 1–2% per year, and are leased for $ 330,000-350,000 per month (0.67-0.71%) due to intense lessor competition and low financing costs , while a recent A320ceo is leased for $ 300,000. In 2018, an A320neo list price was US$ 110.6 million. In July 2018, Airbus was evaluating an A320neo variant for ISR missions, particularly maritime patrol and anti-submarine warfare , and military transport. The aircraft will be able to take roll-on/roll-off mission payloads to carry passengers, troops, VIPs, patients , or cargo. The aircraft could be fitted with
763-467: A 2025 Ultrafan service entry. The production target is a monthly rate of 100 narrow-bodies, up from 60. At the November 2019 Dubai Airshow , Airbus CEO Guillaume Faury said the company was considering the launch of a single-aisle programme in the second half of the 2020s for an introduction in the early 2030s. In June 2023, Faury said work had begun on eAction , a 20-25% more efficient successor to
872-527: A completely new design. The new wing is made from composite material . It is first seen as an upgrade to the existing, mostly metal A320 family wing, which was already upgraded many times. Airbus has already composite wings on the A350 , but this will be an enhanced, new design with highly automated manufacturing suitable for inexpensive high-volume production. Announced in January 2016, a €44.8 million facility
981-461: A deal worth US$ 15 billion. In January 2011, after completing five years of operations, the airline was permitted to launch international flights. In December 2011, the DGCA expressed reservations that the rapid expansion could impact passenger safety. In February 2012, IndiGo took delivery of its 50th aircraft, less than six years after it began operations. For the quarter ending March 2012, IndiGo
1090-880: A domestic legacy airline and one or more foreign investors. By mid-2013, these new LCCs were operating at a unit cost of around 8 yen per seat-kilometer, compared to 10–11 yen per seat-kilometer for domestic legacy airlines. However, their unit cost was still much higher than the 3 yen per seat-kilometer for AirAsia in Malaysia , due to the higher cost of landing fees and personnel in Japan. By 2017, low-cost carriers had achieved market share of 57.2% in South Asia and 52.6% in Southeast Asia. Market share remained somewhat lower in Europe at 37.9% and North America at 32.7%. For
1199-477: A fleet of 385 aircraft. Being a low-cost carrier, IndiGo offers only economy class seating. To keep fares low, IndiGo does not provide complimentary meals in any of its flights. While it has a buy-on board in-flight meal programme, no hot meals are available as, to minimise costs, IndiGo aircraft are not equipped with ovens. However, hot drinks and instant meals prepared with hot water like instant noodles , upma and poha are available. No in-flight entertainment
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#17327902871181308-499: A fleet of over 390 aircraft. It has its primary hub at Indira Gandhi International Airport , Delhi . The airline was founded as a private company by Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal in 2006. It took delivery of its first aircraft in July 2006 and commenced operations a month later. The airline became the largest Indian carrier by passenger market share in 2012. The company went public in November 2015. IndiGo
1417-422: A flight on a full-service carrier. Most airlines charge additional taxes and fees on their tickets. Some low-cost airlines have been known to charge fees for the seemingly ridiculous, such as levying a credit card charge if credit card is the only payment method accepted. While tour and package operators have offered lower-priced, lower-frilled traveling for a large part of modern airline history, not until during
1526-544: A greater number of add-on fees. In the US market, Allegiant Air , Frontier Airlines , Spirit Airlines , and Sun Country Airlines are considered to be ULCCs. In Europe, Ryanair and Wizz Air are the most prominent ULCCs. In Asia, AirAsia and Lion Air are the most prominent ULCCs. The pricing policy of the low-cost carriers is usually very dynamic as befits their business model, with frequent discounts and tickets in promotion. Like other carriers, however, even if
1635-578: A high demand. Once this new line will be fully operational, Airbus is considering to close one of the two current older lines producing the A320ceo, to open a second A320neo family line in the same factory which is large enough. By November 2018, Airbus was hiring in Toulouse and Madrid to develop a clean sheet successor for the A320. Although its launch was not guaranteed, it was expected to arrive from
1744-552: A higher age limit on unaccompanied minors than full-service carriers. Often these airlines do not offer connecting tickets, since the airline will have to pay for ground crew to transfer luggage. A customer may create a connection manually by purchasing two separate tickets, but these are considered separate contracts, and the passenger bears the risk if a delayed inbound flight causes a missed connection. When most countries had national monopolies, crews could negotiate pay raises and good pension benefits (something that costs money for
1853-795: A large-scale reduction of its fleet of Boeing 737 aircraft and operations. In March 2017, International Airlines Group established Level , a long-haul low-cost virtual airline based in Barcelona Airport and serving destinations in North and South America. Long-haul low-cost carriers are emerging on the transatlantic flights market with 545,000 seats offered over 60 city pairs in September 2017 (a 66% growth over one year), compared to 652,000 seats over 96 pairs for Leisure airlines and 8,798,000 seats over 357 pairs for mainline carriers . Former American Airlines CEO Bob Crandall thinks
1962-405: A license to operate international flights after completing five years of operations. IndiGo's first international service was launched between New Delhi and Dubai on 1 September 2011. On 25 October 2024, the airline announced that it will expand its international destinations to Langkawi and Penang . IndiGo codeshares with the following airlines: As of September 2024, IndiGo operates
2071-519: A minimum set of equipment, further reducing costs of acquisition and maintenance, as well as keeping the weight of the aircraft lower and thus saving fuel. Depending on the low-cost airline seats do not recline and do not have rear pockets, to reduce cleaning and maintenance costs. Others have no window shades. Pilot conveniences, such as ACARS , may be excluded. Often, no in-flight entertainment systems are made available, though many US low-cost carriers do offer satellite television or radio in-flight. It
2180-460: A page from the mainline, major, or legacy carriers' desire to reduce costs in all ways possible in regards regional route networks by outsourcing regional operations to the lowest expense airline bidder capable of operating regional aircraft, a new generation of low-cost airlines (in name only) soon evolved in the US with varying levels of success. Among these varieties of low-cost and discount operators were noteworthy starts-ups that managed to get off
2289-511: A return to normal by 2019. Delivery targets could still be met with other engine options (neo or ceo), as 210 Leap-powered jets were planned. After having peaked above 100, the number of aircraft parked awaiting their turbofans declined to 86 by the end of June. The 500th A320neo family aircraft was delivered in October 2018. In July 2019, with the A321neo accounting for 40% of sales, Airbus
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#17327902871182398-468: A simpler fare scheme, such as selling only one-way tickets. Typically fares increase as the plane fills up, which rewards early reservations. In Europe (and early in Southwest's history) luggage is not transferred from one flight to another, even if both flights are with the same airline. This saves costs and is thought to encourage passengers to take direct flights. Tickets are not sold with transfers, so
2507-449: A single aircraft type, so that cabin and ground crew will only have to be trained to work on one type of aircraft. This is also beneficial from a maintenance standpoint as spare parts and mechanics will only be dedicated to one type of aircraft. These airlines tend to operate short-haul flights that suit the range of narrow-body (single aisle) planes. As of lately, however, there is also a rise in demand for long range low-cost flights and
2616-509: A single type of aircraft (Airbus A320) in similar seating configuration which simplifies crew training and maintenance. The airline strikes bulk deals with Airbus, reducing unit costs. The airline targets a quick turn-around time of 20 minutes to get the aircraft ready for the next flight, ensuring planes fly about 12 hours every day. Employees share multiple roles with a check-in staff doubling as baggage handlers. In July 2023, Indian aviation watchdog Directorate General of Civil Aviation imposed
2725-755: A week, and Melbourne thrice weekly. On 11 March 2009, AirAsia X started its first low-cost long-haul service into Europe, to London Stansted . The daily flights are operated by two leased Airbus A340 -300s. A one-way economy-class ticket often costs £150, and the premium-class one-way often costs £350. On 12 January 2012, AirAsia announced that it would be suspending services to London on 1 April 2012. Low-cost European airline, Norwegian Air Shuttle , started long-haul low-cost operations in May 2013 under their Norwegian Long Haul arm. Norwegian initially operated flights to Bangkok and New York from Scandinavia using leased Airbus A340 aircraft, switching to new Boeing 787s in
2834-477: A year after placing the order. It commenced operations on 4 August 2006 with a service from New Delhi to Imphal via Guwahati . By the end of 2006, the airline had six aircraft, and nine more were acquired in 2007. In December 2010, IndiGo replaced state-run carrier Air India as the third largest airline in India, behind Kingfisher Airlines and Jet Airways with a passenger market share of 17.3%. In 2011, IndiGo placed an order for 180 Airbus A320 aircraft in
2943-575: Is also becoming a popular approach to install LCD monitors onto the aircraft and broadcast advertisements on them, coupled with the traditional route–altitude–speed information. Some allow priority boarding for an extra fee instead of reserved seating, and some allow reserving a seat in an emergency exit row (for longer leg room) at an extra cost. Like the major carriers, many low-cost carriers develop one or more bases to maximize destination coverage and defend their market. Many do not operate traditional hubs , but rather focus cities . Airlines often offer
3052-584: Is an incremental development of the A320 family of narrow-body airliners produced by Airbus . The A320neo family ( neo being Greek for "new", as well as an acronym for "new engine option") is based on the enhanced variant of the previous generation A319, A320, and A321, which was then retrospectively renamed the A320ceo family ( ceo being an acronym for "current engine option"). Re-engined with CFM International LEAP or Pratt & Whitney PW1000G engines and fitted with sharklets wingtip devices as standard,
3161-412: Is available and Hello 6E is the in-flight magazine published by IndiGo. IndiGo offers premium services, where the passengers can avail additional benefits like a pre-assigned seat, multiple cancellations and priority check-in at a higher fare. In September 2019, the company announced its tie up with SonyLIV , an on demand video app for providing its passengers with entertainment options in-flight and at
3270-429: Is below its 99.8% goal, with a utilization rate 20% below its ceos. P&W cites a 99.91% dispatch reliability for GTF-powered neos, higher than other new engine introductions, while Airbus reports a 99.6% dispatch reliability. With engine deliveries resuming, there were expected to be fewer than 10 engine-less neos at the end of 2018; Airbus is on track to reach its target rate of 60 deliveries per month by mid-2019. Of
3379-400: Is the reduction of cost and reduced overall fares compared to legacy carriers. Traditional airlines have also reduced their cost using several of these practices. Most low-cost carriers operate aircraft configured with a single passenger class, and some low-cost carriers choose to operate more than one type and configure their aircraft with more than one passenger class, but most operate just
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3488-678: Is the second-largest low-cost carrier in Asia in terms of seats flown. In August 2015, IndiGo placed an order for 250 Airbus A320neo aircraft worth $ 27 billion, making it the largest single order ever in Airbus history. IndiGo announced a ₹ 3,018 crore (equivalent to ₹ 36 billion or US$ 430 million in 2023) initial public offering on 19 October 2015 which opened on 27 October 2015. In October 2019, IndiGo placed an order for 300 Airbus A320neo aircraft worth ₹ 2.3 lakh crore (US$ 28 billion), surpassing its own record of
3597-420: Is well known for using fuel hedging programs to reduce its overall fuel costs. Check-in at the gate of luggage requires fees, as it requires addition to the weight calculation and last-minute baggage handling. Online check-in is becoming common, again in the interest of avoiding personnel costs. Where permissible, some airlines have a disinclination to handle Special Service passengers, for instance by placing
3706-460: Is why Ryanair flies to Gatwick Airport , Luton Airport , and Stansted Airport in the London area and how easyJet is able to fly to Paris-Charles de Gaulle , and Amsterdam Airport Schiphol . In London's case however, low-cost carriers would not be able to use Heathrow as the airport is running at near capacity, so there is no room to build a base. The airlines tend to offload, service and re-load
3815-636: The CFM International LEAP-1A and the Pratt & Whitney GTF (PW1100G) , with 20% lower maintenance cost than current A320 engines. The new engines burn 16% less fuel, though the actual gain is slightly less as 1–2% is typically lost when installed on an existing aircraft. At the February 2010 Singapore Air Show , Airbus said its decision to launch was scheduled for the July 2010 Farnborough Air Show . On 1 December 2010, Airbus launched
3924-855: The European Commission , the LCCs market share (44.8%) exceeded legacy carriers (42.4%) in 2012: between 2002 and 2017, LCC share of international seat capacity rose from 23% to 57% in the UK, from 10% to 55% in Italy and from 9% to 56% in Spain but have still room for growth in domestic seat-capacity In France with 19% and in Germany with 25% in 2017, compared with 66% in the UK, 48% in Spain and 47% in Italy. By early 2019, there were more than 100 LCCs operating 6,000 aircraft, doubled from 2,900 aircraft at
4033-680: The PW1100G -powered version was planned for the end of 2019, with the same test aircraft to be converted during the first quarter and undergo 200 hours of flight testing. In 2018, an A319neo list price was US$ 101.5 million. Interest in the variant has been low, and in January 2019 the A319neo's order backlog was only a fraction of that of the A220, following confirmation of orders from jetBlue and Breeze Airways for 60 A220s each. Also in January 2019, Airbus confirmed that it has no plans to discontinue
4142-891: The UK and Canada for £89. In August 2006, Zoom announced a UK subsidiary to offer low-cost long-haul flights to the United States and India, but suspended its operations from 28 August 2008 due to high fuel prices inducing financial problems. In 2005, Emirates ' Tim Clark viewed long-haul low-cost as inevitable, flights could be operated on 760 seats all-economy Airbus A380s , or 870 for an hypothetical A380 stretch. Since 2005, Australia's Jetstar Airways operates international flights, starting with Christchurch , New Zealand. In late 2006, others followed from Sydney , Melbourne and Brisbane , to popular tourist destinations within 10 hours like Honolulu , Japan, Vietnam , Thailand and Malaysia . With new aircraft deliveries, it hopes to fly to
4251-664: The impact of the COVID-19 pandemic on aviation from 2020. In February 2021 Airbus set up a separate production line in Hamburg for A321XLR aft fuselage work, in a facility formerly used to assemble fuselage sections for the A380. The goal is to enable production of the XLR-specific aft fuselage to ramp up gradually without affecting other A320neo-family production output. Other A321XLR sections are to be produced at numerous sites:
4360-459: The 2020 flight software update, it blocked the last row of its aft-heavy layout of 180, offering only 174 seats. In 2018, Airbus explored the possibility of military versions, for VIP transport , intelligence, surveillance and reconnaissance and maritime patrol for the armed forces of France, Germany and the Netherlands; or Asia-Pacific nations such as Indonesia, Malaysia, New Zealand, and
4469-705: The 6,362 orders, 2,456 are for CFM LEAP engines (38.6%), 1,869 for Pratt & Whitney GTFs (29.4%), and 2,037 for an as-yet unspecified engine choice (32%). By 30 June 2019, Safran claimed the Leap has a 61% market share on the A320neo family, with 44 airlines operating 454 Leap powered aircraft having accumulated 3.3 million flight hours. In early 2022, 57% of in service A320neos were fitted with Leap engines, and 43% with PW1100G engines. In July 2019, Airbus disclosed two outwardly similar, though separate, issues which could result in excessive pitch up behaviour, one affecting
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4578-539: The A319neo programme, although it expects fewer orders due to competition with the A220-300 . The Pratt & Whitney-powered variant made its maiden flight on 25 April 2019. It gained EASA type certification by the end of November 2019, after 90 sorties over 240 h. As of May 2021, six ACJ319neo aircraft had been ordered. On 18 February 2022, China Southern Airlines received the first of its order of four A319neo with CFM LEAP engines. The first A320neo rolled out of
4687-466: The A320 Enhanced (A320E) programme as a series of improvements targeting a 4–5% efficiency gain with large winglets (2%), aerodynamic refinements (1%), weight savings and a new aircraft cabin . At the time, Airbus' Sales Chief John Leahy said: "Who's going to roll over a fleet to a new generation aircraft for 5% better than an A320 today? Especially if another 10% improvement might be coming in
4796-462: The A320ceo's 2 min, improving to 2–3 min by late 2017, still longer than the ceo. LEAP production bottlenecks led to early delivery delays, with no significant repercussions at Avianca or AirAsia ; AirAsia's dispatch reliability is comparable to its ceos. On 30 November 2021, two years after receiving the 1,000th member of the A320neo family, IndiGo took delivery of the 2,000th, an A321neo (MSN 10654) at Airbus Hamburg site. As of March 2024 ,
4905-424: The A320neo "New Engine Option" with 500 nmi (930 km; 580 mi) more range or 2 t (4,400 lb) more payload, and planned to deliver 4,000 over 15 years. Development costs were predicted to be "slightly more than €1 billion [$ 1.3 billion]". The neo list price would be $ 6 million more than the ceo, including $ 3.5 million for airframe modifications and around $ 0.9 million for the sharklets. The A320neo
5014-410: The A320neo and the other the A321neo. Both issues were detected during analysis and laboratory testing, and have not been encountered in actual operation. Airbus has addressed the issues through temporary revisions to the flight manual, including loading recommendations and a change to the centre-of-gravity envelope, and expected to release updated flight control software in 2020. As Lufthansa waited for
5123-717: The A320neo family targeted for a 2035-2040 introduction and more conventional compared to the Airbus ZEROe hydrogen project . At a Civil Aviation Research Council (CORAC) meeting in December 2023, the French government committed €300 million ($ 330 million) per year to support research and development from 2024 to 2027, including for the CFM RISE open fan demonstrator, while support for hydrogen or electric propulsion receives €65 million. In February 2024, Faury confirmed that
5232-642: The A320neo is 15% to 20% more fuel efficient than prior models, the A320ceo. It was launched on 1 December 2010, made its first flight on 25 September 2014 and was introduced by Lufthansa on 25 January 2016. By 2019, the A320neo had a 60% market share against the competing Boeing 737 MAX . As of October 2024 , a total of 10,888 A320neo family aircraft had been ordered by more than 130 customers, of which 3,607 aircraft had been delivered. The global A320neo fleet had completed more than 7.35 million flights over 14.67 million block hours with one hull loss being an airport-safety related accident. In 2006 Airbus started
5341-536: The A320neo. The first Airbus A320neo rolled out of the Toulouse factory on 1 July 2014 and first flight was scheduled for September 2014. The first flight of the neo occurred on 25 September 2014. Its Pratt & Whitney PW1100G -JM geared turbofan ('GTF') engine was certified by the Federal Aviation Administration (FAA) on 19 December 2014. After 36 months, the A320neo and A321neo had flown around 4,000 hours for certification of
5450-486: The A380 assembly line is to be converted to a "digitally enabled" final assembly facility for the A321neo by mid-2022, because of unprecedented demand, in particular for the A321 LR and XLR variants. In February, it indicated that it had a clear path to increasing production rates beyond the 63 per month targeted for 2021, to reach 65 or 67 by 2023. In April, Airbus reduced the average production rate to 40 per month due to
5559-484: The Airbus factory in Toulouse on 1 July 2014. It first flew on 25 September 2014. A joint type certification from EASA and the FAA was received on 24 November 2015. Nearly 28 years after the first A320 , on 25 January 2016, the A320neo entered service with Lufthansa, the type's launch customer. It has a range of 6,300 km (3,400 nmi; 3,900 mi). Six months later at Farnborough Airshow, John Leahy reported that
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#17327902871185668-478: The Irish Aviation Authority. As supply increases, this sort of differentiation by brand is an important criteria for the future success of low-cost carriers, since many experts believe price competition alone is not enough, given the number of carriers. As the number of low-cost carriers has grown, these airlines have begun to compete with one another in addition to the traditional carriers. In
5777-625: The Middle East and 12% within Africa. A long-haul low-cost operation would be harder to differentiate from a conventional airline as there are few cost savings possibilities, while the seat costs would have to be lower than the competition. Long-haul aircraft scheduling is often determined by time zone constraints, like leaving the US East Coast in the evening and arriving in Europe
5886-653: The PW1000G and 39 with the CFM LEAP-1A, and the fleet had accumulated more than 57,600 flight hours and 37,500 cycles (1.5 h average); over 142 routes the average stage length is 900 nmi (1,700 km; 1,000 mi) and like the A320ceo the neo flies an average of 8.4 block hours and up to 10 cycles a day with Lufthansa operating 45 min sectors from Frankfurt to Hamburg or Munich, up to China Southern Airlines flying close to 6 hr sectors. Airbus planned to deliver about 200 A320neos in 2017. In 2018, new A320neos have
5995-759: The Philippines. Such conversions would be possible within a six-to-eight-month timescale. Airbus offers three variants of the A320neo family: the A319, A320 and A321. A neo variant for the Airbus A318 was not proposed but could be developed should demand arise. The shortened- fuselage variant can seat up to 160 passengers or 140 in two classes, with a range of up to 3,750 nmi (6,940 km; 4,320 mi) and improved takeoff performance, while its ACJ derivative can fly eight passengers 6,750 nmi (12,500 km; 7,770 mi) or 15 hours. Qatar Airways
6104-399: The US, airlines have responded by introducing variations to the model. In Europe, the emphasis has remained on reducing costs and no-frills service. A secondary term ultra low-cost carrier ( ULCC ) has been used to differentiate some low-cost airlines whose model deviates further from that of a standard low-cost carrier, with ultra low-cost carriers having minimal inclusions in the fare and
6213-440: The advertised base prices are very low, charges and taxes are typically not mentioned. With some airlines, some flights are advertised as free (plus applicable taxes, fees and charges). Depending on the airline, perhaps as many (or as few) as ten percent of the seats on any flight are offered at the lowest price and are the first to sell. The prices steadily rise thereafter to a point where they can be comparable or more expensive than
6322-673: The aircraft (turnaround) in shorter time periods and do not wait for late passengers, allowing maximum utilization of aircraft. Low-cost carriers generate ancillary revenue from a variety of activities, such as à la carte features and commission-based products. Some airlines may charge a fee for a pillow or blanket or for carry-on baggage. In Europe, it is common for each and every convenience and service to have an additional charge. Low-cost carriers intend to be low-cost, so in many cases employees work multiple roles. At some airlines flight attendants also work as gate agents or assume other roles, thereby limiting personnel costs. Southwest Airlines
6431-488: The aircraft painted in Indigo with the logo in white. The flight attendants wear a single-piece navy-blue tunic with a cap and a thin indigo belt. The airline has the tagline on-time focusing on punctuality. IndiGo became one of the fastest growing low-cost carriers in the world and the largest airline in India. The success of IndiGo has been attributed to its unique business model which reduces costs. The airline operates
6540-676: The airline can avoid responsibility for passengers' connections in the event of a delay. Low-cost carriers often have a sparse schedule with one flight per day and route, so it would be hard to find an alternative for a missed connection. Modern US-based low-cost carriers generally transfer baggage for continuing flights, as well as transferring baggage to other airlines. Many airlines opt to have passengers board via stairs, since jetways generally cost more to lease. Often, low-cost carriers fly to smaller, less congested secondary airports and/or fly to airports during off-peak hours to avoid air traffic delays and take advantage of lower landing fees . This
6649-573: The airlines only in the long term). During this period, most passengers were business travellers who paid high fares that covered these costs. After deregulation, which led to lower fares, many airlines remained bound to these salary agreements and pensions, whereas new low-cost carriers employed new staff with lower salaries, especially for cabin crew, keeping personnel costs low and allowing for competitive fares. In some cases airlines have gone bankrupt (e.g., Alitalia , Sabena , and Swissair ), and new airlines replaced them. Traditional carriers followed
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#17327902871186758-1235: The airport. Low-cost airline The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. The term is often applied to any carrier with low ticket prices and limited services regardless of their operating models. Low-cost carriers should not be confused with regional airlines that operate short-haul flights without service, or with full-service airlines offering some reduced fares. Some airlines advertise themselves as low-cost while maintaining products usually associated with traditional mainline carriers’ services. These products include preferred or assigned seating , catering, differentiated premium cabins , satellite or ground-based Wi-Fi internet, and in-flight audio and video entertainment . The term ultra low-cost carrier ( ULCC ) has been used, particularly in North America and Europe to refer to carriers that do not provide these services and amenities. The low-cost carrier business model practices vary widely. Some practices are more common in certain regions, while others are generally universal. The common theme among all low-cost carriers
6867-478: The announcement of the Civil Aviation Ministry that it would allow IndiGo to take delivery of only five aircraft that year, the airline planned to introduce low-cost regional flights by setting up a subsidiary. Later, IndiGo announced that it planned to seek permission from the ministry to acquire four more aircraft, therefore taking delivery of nine aircraft in 2013. As of March 2014, IndiGo
6976-452: The assembly of in total 3 full-size "Wing of Tomorrow" prototypes. The first prototype was completed in December 2021. The flapping wing section flight tests are targeted to begin in late 2023. In June 2023, GKN Aerospace announced a further progress by delivering the first fixed trailing edge for the “Wing of Tomorrow”. It is manufactured in a high-rate low-cost resin transfer moulding out of autoclave composite process , which supports
7085-664: The availability of next generation planes that make long haul routes more feasible for LCCs. In the past, low-cost carriers tended to operate older aircraft purchased second-hand, such as the McDonnell Douglas DC-9 and older models of the Boeing 737 . Since 2000, fleets generally consist of the newest aircraft, commonly the Airbus A320 family and Boeing 737. Although buying new aircraft is usually more expensive than second-hand, new planes are cheaper to operate in
7194-537: The centre wing box at Airbus's Nantes facility, the rear centre tank at Premium Aerotec in Augsburg, the nose and forward fuselage built at Stelia Aerospace in Toulouse then assembled in Saint-Nazaire, and the wings at Airbus Broughton in cooperation with Spirit Aerosystems and FACC [ de ] which provide high-lift devices. In May 2021, Airbus targeted a production rate of 45 per month by
7303-592: The continental US and Europe . In April 2006, the industry magazine Airline Business analysed the potential for low-cost long-haul service and concluded that a number of Asian carriers, including AirAsia, were closest to making such a model work. On 26 October 2006, Oasis Hong Kong Airlines started flying from Hong Kong to London-Gatwick . The lowest prices for flights between Hong Kong to London could be as low at £75 (approximately US$ 150) per leg (not including taxes and other charges) for economy class and £470 (approximately US$ 940) per leg for business class for
7412-428: The eight in-service aircraft had achieved 99.7% dispatch reliability. By the end of February 2017, 28,105 scheduled flights had been performed by 71 A320neo aircraft with 134 cancellations for a 99.5% completion rate. Spirit Airlines reported PW1000G engine issues on four of its A320neos and did not fly them above 30,000 ft (9,100 m) because the bleed air system froze shut on occasion due to cold temperatures;
7521-632: The end of Skytrain . In late 2007, Cebu Pacific , the Philippines ' largest low-cost carrier, announced non-stop flights from the Philippines to the United States West Coast and other US cities from mid-2009. The airline also intends to launch low-cost service to Middle East , where around a million Filipinos are based, and in Europe. Flights to Dubai — its first long-haul destination — started in 2013. As of September 2024, it operates flights to Dubai daily, to Sydney four times
7630-558: The end of 2009, while seat capacity reached nearly 1.7 billion in 2018. LCCs accounted for 33% of intra-regional seat capacity in 2018 with 1.564 billion, up from 25% in 2008 with 753 million, and 13% of seat capacity between regions with 101 million, up from 6% in 2009 with 26 million. In 2018, penetration rate was 41% of seats within Europe, 36% within Latin America, 32% within North America, 29% within Asia Pacific, 17% within
7739-554: The end of 2021, 64 by the second quarter of 2023, asked its supply chain to allow a rate of 70 from the first quarter of 2024 and is looking for 75 by 2025. In July 2023, Airbus inaugurated a new final assembly line dedicated to the A320neo family, in the Jean-Luc Lagardère factory in Toulouse-Blagnac previously used by the A380 assembly line (stopped in 2020). For now it will produce only the A321neo which has
7848-410: The first demonstrator was to start in the coming weeks, as the project should be completed by 2023 before an eventual product launch. A “radical” A320 makeover is expected to cost over 4 billion euros ($ 4.9 billion, £3.7 billion), significantly less than the estimates of $ 15 billion to $ 20 billion for an all-new Boeing design. (£11 billion to £15 billion). Due to the increased length and increased lift ,
7957-399: The first half of 2019. At the time 53 aircraft had been ordered, including 17 with Leap engines: 12 for Avianca, four for an unconfirmed Chinese operator (later known as China Southern Airlines , which became the launch operator), and one ACJ319neo; and 36 with no engine selection: eight for Avianca, 26 for unannounced customers, and two ACJ319neos. As of December 2018 , certification of
8066-561: The following morning, and the longer flight times mean there is less scope to increase aircraft utilization as in short-haul. The business model is financially risky , and many companies have entered bankruptcy , like Laker Airways . In 2004, Irish Aer Lingus maintains a full service on transatlantic flights while it lowered its prices to compete with Ryanair on short haul. Late in 2004, Oasis Hong Kong Airlines offered London to Hong Kong flights from £199, and Canadian Zoom Airlines started selling transatlantic flights between
8175-403: The global A320neo fleet had completed more than 7.35 million flights over 14.67 million block hours since its entry into service and had been contributing to 20 million tons of CO 2 saving. Engine vibration affects one GTF in 50, leading to premature replacement, but spare engine pools compete with new production: at Lufthansa, dispatch reliability has remained stagnant since service entry and
8284-401: The ground by using the larger aircraft services of established charter airlines. Among this group were the virtual airlines ; Direct Air , PeoplExpress , Western , and those that never began service such as JetAmerica . In Japan, low-cost airlines made major inroads into the market in 2012 when Peach , Jetstar Japan and AirAsia Japan began operations, each with financial sponsorship by
8393-427: The largest single order ever in Airbus history. In December 2019, the airline became the first Indian airline to operate 1,500 daily flights. On 31 December 2019, it became India's first airline to have a fleet size of more than 250 aircraft. In January 2023, the airline became the first Indian airline to have a fleet size of more than 300 aircraft. In February 2023, the airline inducted the first wide-body aircraft ,
8502-661: The legacy carriers will force Long-haul LCCS to lose too much money and will continue to dominate. While Asian carriers like AirAsia X, Scoot , Cebu Pacific and Jetstar Airways are successful, the October 2018 demise of Primera Air and its $ 99 transatlantic flights illustrates the difficulties of the model, as the US World Airways will be relaunched in 2019. Norse Atlantic Airways was founded in 2021 and commenced operations in 2022, operating transatlantic flights as well as flights to Thailand beginning in 2023. Airbus A320neo family The Airbus A320neo family
8611-712: The less complex aircraft fleets and route networks with which these new carriers began operations, in addition to their reduced labor costs. To combat the new round of low-cost and start-up entrants into the very competitive and deregulated United States airline industry, the mainline major carriers and network legacy carriers strategically developed no-frills divisions within the main airlines brand and corporate structures. Among these were Continental Lite , Delta Express , MetroJet , Shuttle by United , Song , and Ted . However, most of these "airlines within an airline" were short-lived and quickly disposed-of when economic rationalization or competitive pressures subsided. Taking
8720-485: The long run since they are extremely efficient in terms of fuel, training, maintenance, and crew costs per passenger. In 2013, ch-aviation published a study about the fleet strategy of low-cost carriers. They stated that major LCCs that order aircraft in large numbers get large discounts for doing so, and due to this they can sell their aircraft just a few years after delivery at a price high enough to keep their operating costs relatively low. Aircraft often operate with
8829-666: The low-cost carriers by enabling web check-in, encouraging machine check-in at the airport, and generally reducing ground personnel cost. The number of crew members follow international conventions that require one flight attendant per 50 passenger seats and two pilots. However, carriers can save money by reducing the amount of ground crew. Carriers hire pilots through third-party agencies based in low-tax countries without benefits for sick pay, pensions or health insurance. Traditional carriers have also started to try this, including starting their own low-tax agencies. These agencies can easily find less experienced co-pilots and cabin crew, as
8938-889: The middle of 2019 and studied higher rates. Airbus confirmed plans to reach 63 monthly from 55 in 2018 and study 70 to 75 monthly beyond 2019, though Safran , one of the two partners in LEAP producer CFM, could not commit to higher volumes. In February 2018, after in-flight failures of the PW1100G with its high pressure compressor aft hub modified, apparently caused by problems with its knife edge seal , European Aviation Safety Agency (EASA) and Airbus grounded some A320neo family aircraft until they were fitted with spares. As of February 2018 , P&W engines had flown 500,000 hours since introduction and 113 P&W-powered A320neo family aircraft were operated by eight customers. Airbus then stopped accepting PW1100G engines. Deliveries of GTF-powered A320neos resumed in May after Pratt returned to
9047-545: The middle of the following decade, after the A321XLR and a stretched A320neo "plus", and would have competed with the Boeing NMA that was, at the time, expected to be launched as early as 2019. Service entry would be determined by ultra-high bypass ratio engine developments pursued by Pratt & Whitney, testing its Geared Turbofan upgrade ; Safran, ground testing a demonstrator from 2021; and Rolls-Royce Plc , targeting
9156-444: The minimum V speeds . The neo is 1.8 t heavier than the ceo, but take-off and landing performance is the same with a modified rotation law, adjusted wing flap and wing slat angles and rudder deflection increased by 5° to cope with the higher thrust. The A320neo is half as loud as an A320 at take-off, with an 85-decibel noise footprint . The LEAP-powered A321neo has 83.3 dB flyover noise, substantially lower than
9265-464: The new wings could also be used on an Airbus A322, an A321 lengthened by 4 passenger seat-rows, being studied by Airbus. The current A320neo family wingspan of 36m with an aspect-ratio of 9 will be extended by ground-folding wingtips to 45m with an aspect-ratio of 14. Additional semi- aeroelastic hinges could lead to 52m wingspan with an aspect-ratio of 18, still fitting in a standard 36m airport gate . In September 2021, Airbus announced starting
9374-538: The older CFM56 and V2500 . The first delivery of the aircraft slipped slightly, Lufthansa taking delivery of the first A320neo on 20 January 2016 and deploying it on its first commercial flight from Frankfurt to Munich on 25 January 2016. Two hundred deliveries were targeted in 2017, but as Pratt & Whitney faced ramp-up difficulties, Airbus expected that thirty aircraft would be parked awaiting engines. The fourth and latest final assembly line in Hamburg
9483-419: The original design seal as a quick fix. By the end of June, Airbus expected to have around 100 A320neos awaiting engines and aimed to deliver most of them in the second half of the year, for a total of over 800 aircraft handed over in 2018. In the first five months of 2018, 69 had been delivered: 40% of all single-aisles, and almost 80% with CFM LEAP engines, but the 22 delivered in May were equally split between
9592-424: The post– Vietnam War era did this business model escalate. Through various ticket consolidators, charter airlines , and innovators in lower-frills flying, such as Channel Airways and Court Line , the traveling public had been conditioned to want to travel to new and increasingly further away and exotic locations on vacation, rather than short-haul trips to nearby beach resorts. The world's first low-cost airline
9701-868: The profession is popular, but there are problems for low-cost carriers to recruit and keep captains who have to be experienced. At IATA , a LCC operation is defined as including the following characteristics, at least to some degree: While low-cost airlines differ in service offerings, by definition they feature most of the following: 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 have relatively high operating costs but lower fares. JetBlue , for instance, has in-flight entertainment in every passenger seat. Other airlines are limited on what points they can implement based on local laws. For example, Irish low cost airlines cannot remove window blinds from its aircraft, as they are required by
9810-517: The same problem was reported by IndiGo. After a year in service, Lufthansa confirmed the 20% efficiency gain per passenger with up to 180 seats, along with reduced noise and CO 2 emissions. Operators confirm the 15% per seat fuel-burn savings even counterbalanced by the added weight on short sectors, which can rise to 16–17% on longer routes and to 20% or more for Lufthansa with 180 passengers up from 168 with two more seat rows. By March 2017, 88 A320neos had been delivered to 20 airlines, 49 with
9919-498: The same route. From 28 June 2007, a second long-haul route to Vancouver, British Columbia , was started. The company ceased operations on 9 April 2008, after over a billion Hong Kong dollars in losses. On 2 November 2007, AirAsia X , a subsidiary of AirAsia and Virgin Group flew its inaugural flight from Kuala Lumpur , Malaysia, to Gold Coast , Australia. AirAsia X claims that it is the first true low-cost long-haul carrier since
10028-403: The second half of 2013 after Boeing resumed deliveries following extensive problems and delays. It served direct routes from the United States ( Los Angeles , Fort Lauderdale , New York City , Oakland-San Francisco , Boston and Orlando ) into Scandinavia ( Oslo , Stockholm , Copenhagen ). In January 2021 Norwegian announced the immediate cessation of their long-haul operations, along with
10137-558: The second half of the next decade based on new engine technology". Airbus launched the sharklet blended wingtip device during the November 2009 Dubai Airshow . The installation adds 200 kilograms (440 lb) but offers a 3.5% fuel burn reduction on flights over 2,800 km (1,500 nmi; 1,700 mi). Compared to the re-engine improvement of 15%, an all-new single-aisle would have brought only 3% more gain while high volume manufacturing in carbon fibre could be much more expensive. Airbus planned to offer two engine choices,
10246-494: The successor aircraft, dubbed Next-Generation Single-Aisle (NGSA), would be designed specifically to run on sustainable aviation fuel to achieve carbon neutrality by 2050. In 2015, Airbus started a new wing project, named Wing of Tomorrow (WoT), announced as the "Wing of the future" programme in 2016. A new $ 1–2 billion carbon-composite wing could be used in the A321neo-plus-plus, compared to $ 15 billion for
10355-561: The targeted low-cost of Airbus by avoiding an autoclave . By January 2019, three years after its introduction, 585 neos were in commercial service with over 60 operators, led by IndiGo (87), Frontier Airlines (33) and China Southern (26). Lufthansa confirms the PW 16% fuel savings, 21% per seat with denser 180-seat layout up from 168, while Avianca states its LEAPs are 15–20% more efficient, quieter, reduce oil consumption and routine maintenance. Starting both GTFs initially took 6–7 min up from
10464-473: The two power plants. After the three-month halt, the goal of 210 GTF-powered deliveries in 2018 was expected to be missed by 30–40 unless Pratt could accelerate production, exposing itself and Airbus to late penalties. Airbus COO Guillaume Faury aimed to do away with "gliders", i.e. airframes without engines, by the end of 2018. Bernstein Research had forecast 50 fewer deliveries than planned and expected
10573-498: The two powerplant versions. This is about three-quarters of the certification effort of a new design. Of these 4,000 hours flown, 2,250 were with PW GTFs and 1,770 with CFM LEAPs. The flight test programme was to conclude in 2018 with the completion of A319neo testing. The changes impact flying qualities , performance and system integration; they entailed retuning the fly-by-wire controls and meeting type certification requirements which have evolved since 1988, and helped decrease
10682-406: The wide-body space by placing an order of 30 A350-900s , with 70 options. The delivery of these aircraft will begin in 2027. IndiGo is headquartered in Gurgaon , India. The company is publicly listed under the moniker NSE : INDIGO. Twenty dots arranged in the shape of an aircraft serves as the logo of the airline. The airline uses a two tone blue livery on a white background with the belly of
10791-523: Was Bill Clinton , later US President. The first airline offering no-frills transatlantic service was Freddie Laker 's Laker Airways , which operated its famous "Skytrain" service between London and New York City during the late 1970s. The service was suspended after Laker's competitors, British Airways and Pan Am , were able to price Skytrain out of the market. In the United States, airline carriers such as Midway Airlines and America West Airlines , which commenced operations after 1978, soon realized
10900-494: Was Pacific Southwest Airlines , which started intrastate flights connecting Southern and Northern California on 6 May 1949. PSA's light-hearted atmosphere and efficient operations were a runaway success early on, and inspired a number of low-cost start-ups across the United States, beginning in the mid-1960s. Herb Kelleher studied the success of PSA, and copied their culture closely when he established Southwest Airlines in 1971. The first airline to offer cheaper transatlantic fares
11009-499: Was Icelandic airline Loftleiðir in 1964, often referred to as "the Hippie Airline". Many young Americans travelled to Europe after graduation, to experience the "old-world culture", and they were more concerned with getting there cheaply than comfortably or even exactly on time. Loftleiðir were not famous for speed or punctuality, but flying with the company became a sort of rite of passage for those young "hippies", one of whom
11118-468: Was built in Filton , with 300 engineers. The new wing design and tests take place in this Filton facility. Other Airbus locations in the UK, France, Spain and Germany are working with 30 partners on this wing project. In May 2021, Airbus announced that for improved aerodynamic performance the wing will be longer and thinner with folding wingtips to access existing airport gates. By May 2021, assembly of
11227-624: Was examining options for allocating more production capacity to the stretched variant. It acknowledged that ramping up production of the popular Airbus Cabin Flex configuration was proving challenging. At this time in 2019, all A321s were assembled in Hamburg; one option under consideration would be to repurpose the A380 assembly line in Toulouse. In the first half of 2019, Airbus delivered 294 A320/A320neo-family aircraft, of which 71 were A321neos and 163 were A320neos (i.e. A321neos accounted for 30% of neo deliveries). In January 2020, Airbus confirmed that
11336-644: Was ranked as the fifteenth most punctual airline globally in 2022 by OAG . IndiGo was founded in 2006 as a private company by Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal , a United States–based expatriate Indian . InterGlobe had a 51.12% stake in IndiGo and 47.88% was held by Gangwal's Virginia -based company, Caelum Investments. IndiGo placed a firm order for 100 Airbus A320-200 aircraft in June 2005 with plans to begin operations in mid-2006. IndiGo took delivery of its first aircraft on 28 July 2006, nearly
11445-480: Was set to be launch customer but upgraded its order to the larger A320neo in late 2013, with no new launch operator named since then. Spirit later ordered 47 new A319neo aircraft. The A319neo made its first flight on 31 March 2017, powered by CFM LEAP engines. After 500 flight hours, the LEAP-powered A319neo achieved FAA/EASA Type Certification by 21 December 2018, allowing it to enter service in
11554-612: Was slated for service entry in spring 2016, the A321neo six months later and the A319neo six months after that. The 2010 order for 40 Bombardier CS300s (now known as Airbus A220-300 ) and 40 options from Republic Airways Holdings – then owner of exclusive A319/320 operator Frontier Airlines – pushed Airbus into the re-engine. Airbus COO-customers John Leahy decided against ignoring the CSeries and allowing it to grow, as Boeing had previously done with Airbus, and instead aggressively competed against Bombardier Aerospace . Introduction
11663-425: Was the most profitable airline in India and became the second largest airline in India in terms of passenger market share. On 17 August 2012, IndiGo became the largest airline in India in terms of market share surpassing Jet Airways , six years after commencing operations. In January 2013, IndiGo was the second-fastest-growing low-cost carrier in Asia behind Indonesian airline Lion Air . In February 2013, following
11772-405: Was then advanced to October 2015. Airbus claims a 15% fuel saving and "over 95 percent airframe commonality with the current A320". Its commonality helped to reduce delays associated with large changes. In March 2013, airlines' choices between the two engines were almost equal. The new "Space-Flex" optional cabin configuration increases space-efficiency with a new rear galley configuration and
11881-521: Was to open in July 2017; 60 A320s should be produced monthly from 2019. With 90 A320neos delivered by October 2017, Airbus acknowledged that it would not attain the 200 target, even with many deliveries in the fourth quarter. More than 40 A320neos were parked without engines, but with most of the engine issues resolved by early 2018, more than half of the A320s delivered in 2018 were expected to be neos. Airbus expected to produce 60 narrow-bodies per month by
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