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Etihad economy
Leoni Jesner

Evaluating low-cost vs traditional airlines

Low-cost airlines began revolutionizing the airline market in the 1970s, a time when new airlines launched competitively low prices in a strategic move to capitalize on a wider customer base. The first airline to disrupt the market was Pacific Southwest Airlines, which undercut its main competition by offering flights with dramatic price differences. In a relatively short timeframe, an influx of low-cost carriers dominated a significant chunk of the lucrative market, which has generated tremendous momentum as more budget airlines enter the network.

Traditional airlines are therefore facing increased threat of competition, forcing them to reposition and rethink pricing, services, products and even marketing models in a battle to maintain market share.

Although arguably more cost effective, point to point carriers have a reputation for hidden costs, charging for add on services and flying less impressive planes. So how do low-cost airlines compare to an economy seat on the world’s most renowned airlines?

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