How Do I Buy a Cheap Flight?

Budget airline company (Budget airline company), also known as low-cost airline or low-cost airline, refers to the elimination of some traditional air passenger services to control operating costs lower than ordinary airlines, which can provide large amounts of cheap long-term Air fares.

Budget airline

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In Europe and the United States, due to fierce competition and rapid cost increases, many low-cost airlines have been merged or spontaneous.

Reports of low-cost airlines have been frequently seen. News such as Asia Airlines expansion of China s aviation network and European low-cost airlines record turnover in 2009 have raised the industry s renewed attention to low-cost airlines and explored whether China should vigorously develop low-cost airlines. The company's discussions are heating up again. As China's first Spring Airlines operating under a low-cost aviation model, it can be said that it survives in the cracks. Under the background of the global financial crisis in 2008, the civil aviation industry seems to be the most affected industry, and world-renowned large airlines have embarked on it. China s civil aviation is no exception, especially the relatively weak private airlines have encountered unprecedented difficulties. The bankruptcy of East Star Airlines, the change of ownership of Eagle United Airlines, and Northeast Airlines The dilemma and other facts make us feel that the private aviation operations are struggling. Their small fleet size, low operating capital, and poor flight schedules make their lives much harder than those of the three major state-owned airlines. It is even worse than the three major airlines and the State-owned Assets Supervision and Administration Commission's injection of capital to provide them with snow. Private aviation is a weak person in the context of China's economic system. There is no such thing as "

America

1997

In 1997, there was a wave of price cuts in civil aviation across the country. The actual sales price of air tickets was reduced by about 40% compared to 1996. However, the volume of passenger transportation of civil aviation in 1997-1998 increased by only 1% -2% compared with 1996. In 1996, China's civil aviation revenue was flat. In 1997, the main air transportation industry lost more than 4 billion yuan, and the national civil aviation industry lost a total of more than 30 billion yuan.

2002

The country's overall economy began to enter a period of rapid development in 2001, and China's civil aviation industry also began to break even in 2001, with a profit of 200 million yuan in 2001. From 2002, the passenger volume of civil aviation increased by more than 10% per year. A one-way mid-range ticket will account for about 1/10 of the annual per capita income; in western developed countries, the average price of a middle-haul ticket accounts for 0.5% of its annual income. For a considerable number of Chinese people, air travel is still considered a luxury consumption, so Chinese tourists have a stronger demand for low-cost, low-price air services.

The main lines operated by Shanghai are as follows:

Shanghai-Zhuhai, Shanghai-Harbin, Shijiazhuang-Shanghai, Shanghai to Shenyang, Shanghai to Hong Kong

Shenyang-Chongqing, Shanghai-Chongqing, Shijiazhuang-Shenzhen, Changsha-Guangzhou

Shanghai-Haikou, Shanghai-Macao, Shijiazhuang-Kunming Shanghai-Zhengzhou

Shanghai to Japan, Thailand, Hong Kong, Macau, Beijing, Guangzhou, Chongqing and more than 60 international and domestic routes

With the implementation of differentiated services as the definition of low-cost aviation, there are currently 6 low-cost airlines operating in mainland China. China's current low-cost airlines have a market share of less than 5% and have great potential for development.

Introduction to Low Cost Airlines

In the mid-to-late 1990s, many emerging airlines imitated Southwest Airlines' operating model and achieved remarkable success in North America, Europe, and Australia, affecting and changing the basic structure and development direction of the entire industry. Today, there are more than 60 low-cost airlines worldwide, with more than 1,200 aircraft.

Cheap Airline US Market

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From the 1970s to the 1980s, there were more than 300 emerging airlines in the U.S., and now there are only 4 fruitful ones: Southwest Airlines, American West Airlines, ATA (American Trans Air) and Midwest Express. Beginning in the 1990s, encouraged by the successful development of low-cost airlines such as Southwest and American West, nearly 30 new airlines were established in the United States, all of which imitated Southwest Airlines, and some low-cost airlines merged with other airlines. Together they form a dynamic, low-cost army (see table below).

Major US Low Cost Airlines (2000)
Carrier	Passenger traffic (thousands)	Number of aircraft at the end of the year
Southwest	63,678	344
America West	19,954	164
ATA	8,006	58
AirTran	7,567	54
Spirit	3,221	28
Frontier	2,893	25
National	1,990	16
Vanguard	1,764	11
JetBlue	1,128	10

The development of budget airlines

Faced with the aggressive development of Southwest Airlines and other low-cost airlines, the first thought of incumbent airlines is to use various possible "weapons" to fight back, including: 1. Follow-up on price reductions, or relax restrictions on fare conditions, Increase the number of low-sale seats available for sale, reduce prices in disguise; 2. Increase capacity investment in an attempt to repel low fares with high inputs, while using high investments to meet the traffic growth following price reduction follow-up; 3. Increase frequent flyer rewards; 4 . Increase agency commission; 5. Add service features.

Despite exhausting all the tricks, the established airlines still failed in this battle, especially in the face of Southwest Airlines' invasion. The most common ending is to fight back first and then gradually exit.

Of course, some established airlines did not immediately surrender or gradually withdraw in this battle, but immediately surrendered or gradually withdrew with a new strategy, and adopted new strategies and tactics to address the basic structure and development direction of the low-cost aviation industry. Facing Southwest's aggressive low-cost offensive, the established airlines took the time into consideration and abandoned the short-term insurance policy to counter the point-to-point operation of Southwest Airlines by connecting flights. Its methods include outsourcing, replacing regional aircraft with regional aircraft, and alliances between backbone airlines and regional airlines.

Cheap Airline European Market

There are now more than 20 low-cost airlines in Europe, operating more than 500 routes. Only a few low-cost airlines in Europe were founded in the 1980s, and most of them were established in the 1990s. In 1987, the European Union implemented an open sky policy. As long as airlines hold a license, airlines can operate routes between any cities in the European Union, which provides a broad space for development for low-cost airlines.

There are many low-cost airlines in Europe. There are more than one in almost every country, but their business models have their advantages and disadvantages. Irish-based Ryanair and British-based EasyJet based in London's Luton Airport are now the largest low-cost airlines in Europe. They are comparable in size, strength and profitability, and both continue to occupy low-cost and efficient services. The low-cost aviation market has also rapidly expanded through the merger of other companies. Because the two company bases and the routes they fly are not the same, there is no obvious direct competition and no cooperative relationship. It is foreseeable that these two companies will be the backbone companies leading the European low-cost aviation market. Their respective development directions and their relationship will play a decisive leading role in the European low-cost aviation market.

The European low-cost aviation market will continue to grow with the continued growth of the EU economy. In October 2004, ten new member states joined the European Union, making transportation in Europe more convenient. Many low-cost airlines have targeted these regions and are preparing to open new routes. On the other hand, these countries Economic development is relatively backward, and some low-cost aviation markets have not yet started, and there is broad room for development.

According to the International Air Transport Association's forecast, the number of international scheduled passengers in Europe increased from 176 million in 1999 to 215 million in 2003, an average annual increase of 5.1%, and the market share gained by low-cost airlines is even higher than this figure. Studies show that low-cost airlines now account for 4% of the market share in Europe, and are expected to increase to 12-15% by 2010. Analysts point out that despite the fierce competition, the market is far from being saturated, and low-cost carriers will have greater development. They predict that before 2010, the annual growth rate of low-cost airlines will be around 30%, and gradually squeeze out the traditional large airlines from short-haul markets that once brought them rich monopoly profits.

Cheap Airline Asian Market

In 2009, the trend of low-cost aviation began to hit Asia. There are currently nearly 20 low-cost airlines in the Asia-Pacific region, and nearly 10 are planned to be established. Asia's first "low-cost carrier" Asian Airlines claims to be profitable.

Asian low-cost airlines are driven by Airasia Malaysia, and a joint venture with Thailand to set up Thai Airasia in Thailand to launch an offensive. Starting in 2013, Thailand, Singapore, Malaysia, and Indonesia will now open routes to Hong Kong. And Macau. While Valuair launched the Singapore = Bangkok route and Singapore = Hong Kong route, Singapore Airlines established Tiger Airways to meet low-cost carriers in Southeast Asia. The Hong Kong market with a large number of customers is the goal of the aviation industry to open stations for low-cost airlines. The aviation industry reports that Cathay Pacific Hong Kong is also studying the establishment of low-cost airlines. One of the factors is that the Hong Kong government has recently signed a sky open agreement with Malaysia to consolidate its position as an Asian aviation hub. market.