When it comes to flying, there used to be a clear choice between full-service airlines and budget airlines . But the lines have become blurred, and now it's not as simple as it once was. Legacy airlines are offering basic economy fares, while budget airlines are providing expanded seat choices and amenities. On top of that, ultra-low-cost airlines have entered the market, charging for almost everything imaginable.
With all these options, it can be difficult to decide which type of airline to fly. The label of "budget" or "full-service" doesn't always accurately represent the level of service you'll receive. In this article, we'll explore the differences between budget airlines and legacy carriers and provide you with the information you need to make an informed decision.
A Brief History of Budget Airlines
The rise of low-cost airlines can be traced back to The Airline Deregulation Act of 1978. Prior to deregulation, the government tightly controlled many aspects of air travel, including ticket prices and the creation of new airlines. But after deregulation, airlines were free to expand their routes, decrease or increase fares, and operate with minimal oversight.
In 1971, Texas-based Southwest Airlines emerged as a pioneer in the low-cost airline market. Southwest focused on maintaining the lowest fares by cutting back on amenities like inflight meals and first-class service. They operated short routes multiple times per day, ensuring maximum efficiency. Inspired by Southwest's success, numerous low-cost carriers were established in the following decades.
Stand-alone Budget Airlines vs. Subsidiary Budget Airlines
There are two types of budget airlines in today's competitive landscape. Stand-alone budget airlines, such as Southwest, JetBlue, Spirit, Ryanair, and Norwegian, exclusively adhere to the low-cost model. They offer no-frills service and prioritize cost-saving measures.
On the other hand, subsidiary budget airlines are launched by legacy carriers or acquired by them to cater to budget-conscious travelers. Examples include Qantas' JetStar, Air Canada's Air Canada Rouge, Iberia's LEVEL, Lufthansa's Eurowings, and Singapore Airlines' Scoot and Tigerair. However, subsidiary budget airlines tend to come and go more frequently as they are less risky for the parent company.
Defining Today's Budget Airlines
The definition of a budget airline has evolved over time. Originally, budget airlines were characterized by their lack of premium cabins or complimentary meals. However, many legacy carriers now also omit these amenities in their economy class. The label of "budget airline" has become increasingly difficult to define.
Budget airlines typically offer unbundled fares, where customers start with a low base fare and have the option to purchase additional services like checked baggage and seat assignments. This model has become the industry standard for budget airlines. While legacy carriers have started offering unbundled fares in the form of basic economy, it remains a defining feature for budget airlines.
Another distinction is that budget airlines do not have alliances or partnerships with other airlines, unlike legacy carriers. This limits their network and prevents passengers from booking itineraries that involve transferring to other airlines. Budget airlines also operate on a point-to-point model, whereas legacy carriers use a hub-and-spoke system.
The Advantages of Budget Airlines
Budget airlines have several advantages that contribute to their sustained profitability. They often fly in and out of smaller airports, which reduces landing fees and gives them more negotiating power. Budget airlines also have newer and more uniform fleets, which are more fuel-efficient and require less maintenance. They prioritize headcount over comfort, allowing them to maximize the number of seats per plane. Additionally, budget airlines save on labor costs by not employing unionized workers and often have simplified pricing structures.
Making the Right Choice
When choosing between a budget airline and a legacy carrier, it's important to consider your individual needs and preferences. While budget airlines offer lower fares, they may charge extra fees for services that are included with legacy carriers. Legacy carriers often have more extensive routes and partnerships, offering more flexibility in case of disruptions. Additionally, legacy carriers cater to a wider range of travelers, including luxury and business travelers.
Ultimately, the decision comes down to understanding the pros and cons of each option. By considering factors such as price, route availability, amenities, and potential fees, you can make an informed choice that suits your needs.
For more information on budget airlines, check out our articles on the best budget airlines for international and domestic flights.
Image Caption: Budget airlines offer lower fares, but it's important to consider the pros and cons before making a decision.
