Low-cost expression is used when we refer to cheap, affordable services for almost any pocket, regardless of the field of activity. The low-cost concept is quite new in aviation.
In translation, the expression means “low cost”, “affordable” and in this area it is related to the fact that the airline offers cheaper flights than other competing companies.
The goal of low-cost airlines is to focus on minimizing and streamlining operating costs so that they can offer passengers much lower prices than airlines that offer normal rates.
How do airline companies reduce costs? Typically, they use one type of aircraft, which reduces significant operating costs. Generally, the cost of ground preparation of the aircraft is very expensive due to qualified staff. If only an aircraft model is used, the maintenance and staffing costs are much lower.
Also, maintenance of a single aircraft model also reduces costs because the same spare parts will be used. In general, preferred low-cost airlines are Boeing 737 and Airbus A320-321.
However, low cost airlines prefer new aircraft at the expense of second-hand ones, as they would have fuel efficiency, which in the long run will reduce maintenance costs.
At the same time, it is preferable to secondary airports, where taxes are lower than in major airports in the world. Last but not least, low-cost company staff have multiple tasks that help them pay for wage costs more efficiently. In some airlines, boarders work as gatekeepers or take on other functions, including aircraft flight procedures after the flight.
Worldwide there are about 130 low cost companies but, on the other hand, around 80 companies have so far gone into insolvency. The low-cost sector is an extremely competitive one, so some companies fail to keep pace.
Wizz Air is the largest low-cost company in Central and Eastern Europe. This low cost phenomenon has benefits for passengers because they can travel cheaply and quickly anywhere in the world.