In contrast with the charter airlines, which existed long before deregulation, the airlines dealt with in this surgical incision came into being at the same time or briefly before. As their slang title suggests, they are based on a very convenient price/service relationship, make savings on the second of those factors.
These airline companies tar conk out that fraction of individual travellers who, if travelling with other companies, would go for Economy single out at the lowest prices available: the advantage that the no-frills choice offers is the equal or lower fares, based on the subroutine it or lose it principle, that is to say there is no surmise of changing the reservation, that being the point at which the flight shred is bought. This is also the principle employed for the best individual fares on scheduled flights.
Their strategy is based on the minimising of management be and on the potential offered by yield management. With regard to the reduction of management costs, this relates to on-board personnel and thus the reduction of service on board to the minimum, however above all it concerns the issuing of tickets which on average costs between 15 and 30 dollars for printing, scattering and agency commission : thus the no-frills companies normally treat so-called ticketless travel.
A corollary of this policy is the prevalence of direct sales, but only one no-frills company claims to have no relations with travel agencies, reservation systems or any interline reason: in general the no-frills companies also operate through the traditional sales channels, but to a limited extent. In practice the typical method they use to sell and tax return entitlement to travel is as follows: the traveller books by telephone and pays by credit card, the company produces a simple sheet of subject listing the details of the travel booked and...
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