Yes and no. Low-cost airlines can be serious competition to big airlines, as they offer lower ticket prices and focus on efficiency and cost-saving measures to attract budget-conscious traveler’s. Low-cost airlines often use secondary airports, have a simplified fare structure, and charge for additional services that are optional on traditional airlines, such as baggage, seat selection, and in-flight meals.

The low-cost business model has been successful for many airlines, including Southwest Airlines, Ryanair, and EasyJet, who have managed to expand their operations and gain market share from larger legacy carriers. However, big airlines have also responded to this competition by creating their own budget subsidiaries, such as Delta Air Lines’ Delta Connection and United Airlines’ United Express.

Overall, the competition between low-cost airlines and big airlines has led to increased options for travelers and lower prices, as both types of airlines strive to offer the best value for money to their customers.

Sure, here are some examples of low-cost airlines that have become serious competitors to big airlines:

1. Southwest Airlines – Southwest is the largest low-cost airline in the world and operates primarily in the United States. It is known for its low fares, no-frills service, and frequent flights to popular destinations.
2. Ryanair – Ryanair is an Irish low-cost airline that operates primarily in Europe. It is one of the largest airlines in Europe by passenger numbers and is known for its low fares and fees for additional services.
3. EasyJet – EasyJet is a British low-cost airline that operates primarily in Europe. It is the second-largest low-cost airline in Europe after Ryanair and is known for its low fares and a wide range of destinations.
4. JetBlue – JetBlue is an American low-cost airline that operates primarily in the United States, Caribbean, and Latin America. It is known for its affordable fares, comfortable seats, and in-flight entertainment options.
5. Spirit Airlines – Spirit Airlines is an American ultra-low-cost carrier that operates primarily in the United States, Mexico, the Caribbean, and Central and South America. It is known for its low fares and fees for additional services, such as baggage and seat selection.

These airlines have been successful in attracting budget-conscious travelers and competing with larger legacy carriers by offering lower fares and a more streamlined service model. However, big airlines have also responded by creating their own budget subsidiaries, such as Delta Air Lines’ Delta Connection and United Airlines’ United Express, to compete in this market.

What about business travel?

9/10 if you are flying business you aren’t paying for it. So the the larger airlines can keep the margins high on their premium seats. Giving up a few rows of economy for a lay flat bed at upto 10x the cost of an Economy seat works for the larger airlines but the economicis just wouldn’t work with the smaller airlines as it is not only the larger seat that business travellers opt for. It’s the lounge, seperate check-in, better food etc. All the things that low cost carries do not have, and to be honest they don’t have to have as they want to keep their operating costs as low as possible.

Is low-cost travel something recent?

Low-cost air travel has its roots in the United States in the 1970s, when Southwest Airlines began operating as a low-fare carrier. However, the first true low-cost airline was probably Ryanair, which was founded in 1984 and began operating as a low-cost carrier in the mid-1990s.

In Europe, the low-cost airline revolution began in the 1990s, when airlines such as easyJet and Ryanair started offering low-cost flights between major cities in Europe. These airlines were able to keep their fares low by offering a no-frills service, operating from secondary airports, and charging for optional services such as baggage and seat selection.

Low-cost airlines have since become increasingly popular around the world, with many new carriers entering the market and established airlines launching their own budget subsidiaries. The low-cost model has been particularly successful in regions such as Europe, Southeast Asia, and Latin America, where there is strong demand for affordable air travel.

What about transatlantic routes?

Low-cost carriers have started to expand into transatlantic routes, and while they are not yet as dominant in this market as they are in some domestic and short-haul markets, they do pose a threat to traditional carriers.

The transatlantic market has historically been dominated by legacy carriers such as British Airways, Lufthansa, and American Airlines. However, in recent years, low-cost carriers such as Norwegian Air, Wow Air, and Primera Air have started to offer transatlantic flights at lower prices.

These low-cost carriers are able to offer lower fares by operating from secondary airports, using more fuel-efficient aircraft, and charging for additional services such as baggage and seat selection. They also offer a more basic service than traditional carriers, with fewer frills and amenities.

While low-cost carriers have not yet taken over the transatlantic market, they have been successful in attracting price-sensitive travelers and have forced traditional carriers to lower their fares and improve their service to compete. In response, some traditional carriers have launched their own budget subsidiaries, such as British Airways’ Level and Norwegian Air Shuttle’s Norwegian Air UK, to compete in this market.

Overall, low-cost carriers are likely to continue to grow their presence in the transatlantic market and will likely remain a threat to traditional carriers in this market. However, there will always be a market for full-service carriers who offer a more comprehensive range of services and amenities, especially for business travelers and those willing to pay a premium for a more comfortable and convenient travel experience.

What is their business model?

Low-cost airlines have a different business model from traditional airlines, which allows them to offer lower fares while still making a profit. Here are some key elements of the low-cost airline business model and how they work:

1. Operating from secondary airports: Low-cost airlines often operate from smaller, less busy airports that are located outside of major city centers. These airports typically charge lower landing fees and other operating costs, which allows the airlines to keep their overall costs lower.
2. No-frills service: Low-cost airlines offer a no-frills service, which means that they don’t provide many of the amenities that traditional airlines offer, such as in-flight meals and entertainment. Passengers can purchase these services for an additional fee, but the basic fare is lower as a result.
3. High aircraft utilization: Low-cost airlines try to keep their planes in the air for as many hours as possible each day, which maximizes the amount of revenue that they can generate from each aircraft. This means that they often have quicker turnaround times between flights and schedule flights more tightly.
4. Simplified fare structure: Low-cost airlines often have a simplified fare structure with fewer fare classes and more restrictions. This allows them to sell seats more quickly and fill up planes more efficiently.
5. Fee-based revenue: Low-cost airlines generate additional revenue by charging fees for things like checked bags, seat assignments, and priority boarding. This allows them to keep their base fares low while still generating additional revenue.

Overall, the low-cost airline business model is focused on efficiency, cost savings, and generating revenue from ancillary services. By keeping costs low and generating additional revenue through fees and other sources, low-cost airlines are able to offer lower fares than traditional airlines while still making a profit.