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They are achieved by several cost-cutting business practices such as:
o Point-to-point services (no waiting for baggage or passenger transfers, less complexity)
o Cheaper product design (no free food or drinks, no newspapers)
o Standardized fleet (lower aircraft capital outlay, lower training costs, cheaper parts & equipment supply, lower maintenance costs)
o Use of secondary airports (lower charges)
o Direct Sales via Internet as main distribution channel (less travel agent fees)
- High operational efficiency: High aircraft utilization is crucial to maximize the profits of the airline. Hence, quick turnaround times at the gates are required to reduce the time on the ground, where aircrafts do not make profits...
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