LOW+COST+AIRLINES+SUMMARY

The concept of low cost airlines emerged in Europe in 90’s and progressively extends itself according to Human being needs, the economic context and financial situation of each. Nowadays, behaviours and habits changed and more and more people as students use low cost companies to travel. -**Characteristics :** Secondary terminals are often used by low cost companies because they are less frequented and cheaper. Simplified routes. Only one class. One kind of plane in order to reduce maintenance costs. No marketing budget but publicity on board. Meals are paid : an other source of profit for the company. No possibility to book a place which force passengers to board quickly and early. Employees are required to be polyvalent and multifunctional. They could be required to clean the plane ! Several companies are concentred in this air market segment:

__Moroccan low cost airlines:__ ATLASBLUE, JET4YOU... __French ones:__ TRANSAVIA, XL AIRWAYS FRANCE... __Spanish ones__: VUELING... __English and Irish ones__: EASYJET, RYANAIR (it merged with Buzz (an old KLM low cost airline)) ... //__ A cost domination strategy __// : companies are forces to reduce greatly their costs and services to be able to propose a low price. About competition, low cost airlines are obviously threatened by companies which are able to offer more services (better confort, meals…) at a price similar to low cost companies. There is a low cost subsidiary (segmentation du marché aérien). For example, Air France didn’t hesitate to create Transavia and communicate it as a low cost airline. -**What about quality and safety ??** Tickets are not refundable nor exchangeable. There are no services. Planes seem to have flight times of up to 11h/day ! In fact, the goal of any low cost airline is to increase their porfitability which is possible only by the increase of passengers in board.
 * -The low cost strategy : **