The two main low-costs European Easy Jet and Ryan Air,
access to the forefront on traffic intra-European and domestic. Their growth
over the period 2000-2004 was respectively +31% to +46% per year!
During the same period, the traffic of normal remained
relatively stable. Easy Jet and Ryan Air, therefore, do not establish their
current positions by a massive transfer of traffic, but by the combination of
two phenomena:
On the one hand, induction of traffic, creating a new
kind of application (the trip "low-costs" attracting new customers, which so
far does not traveled, the voyage by substituting "pulse" of other forms of
entertainment consumption type);
On the other hand, confiscating a large part of the
natural growth in traffic linked to economic growth (including classic customer
and the business customer segment Affairs sensitive to the price).
"But the trees do not rise up to heaven ..." And
despite the exponential growth rate posted by the low-cost in recent years, it
would seem that there is a limit to this expansion: While EasyJet and Ryanair
may become No. 1 and 2 in terms of traffic intra and domestic, but the
characteristics of their model bear inherently limits their growth and the risk
of weakening profitability. Offering low prices, completely out of touch with
reality, induces a new leisure traffic, which is not prompted by a purchase
corresponding to a "need" but to drive a purchase. The bouquet of destinations
offered at the beginning of a market suffer the same economic rules as those
governing the fashion industry: while reflecting new product trends ephemeral
détrône the previous ... For a low-cost, supply creates demand and
the offer must be renewed promptly and regularly. The market is artificially
stimulated, and once the mature market issuer reached, the development of each
new destination is necessarily at the expense of existing destinations, as the
market has reached its size limit: some destinations have the potential to
retain their visitors, and constitute a substantive trade-for example Ryanair
Bergerac or Carcassonne- they are in other words the "basics" of the permanent
collection. Other destinations, not having these natural assets, may at the
discretion of modes and opportunities for the development of low-cost airlines
that operate, to be replaced today by cities on the Spanish coast, by tomorrow
cities in Eastern Europe ...
A record low cost
- They usually use planes of a single model, mostly Boeing
737-200 or 300, possibly bought used. These aircraft have indeed the lowest
cost to purchase or rent, and low operating cost per seat.
- They have only one class (as opposed to multiple aircraft
companies classics), which greatly reduces operating costs.
- They usually land on secondary airports, to speed up the
average time of rotation avoiding congestion, and to pay airport charges
reduced.
- They simplify as much as possible the procedures for loading
and unloading (unallocated seats), once again turns to accelerate and reduce
the need for staff. In this context, they also sell tickets directly by phone,
fax, but especially the Internet, and not by the computerized reservation
systems (CRS) and the travel agencies, more expensive. Tickets are paid for
prior to travel and non-refundable, income is certain and swift (no gap between
revenue and expenditure).
- To obtain a reduction in payroll, they employ personal
versatile, pay minimum wages, but introduce a premium of productivity and
sharing a stake in the company.
- They offer very limited service on board and fees.
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