* Low cost: an air hose that offers low menus in exchange for extinguishing many in-flight services to riders. * Long draw: more than 6 hours flight in general. but the definition is really elastic. * Target market: leisure. clip and monetary value sensitive concern travelers

Current issue

* A Swiss regional air hose Baboo is be aftering to establish a new long draw. low cost and europen-based air hose FlyA in summer 2013. with transatlantic operation to the east seashore of the U. S. * A Singapore budget ailrline. Scoot. will get down operations this theoretical account in 2012. fall ining Malaysia’s AirAsia X and Australia’s Jetstar. a Qantas subordinate. in winging long-haul in the part. * Transatlantic budget bearer Zoom Airlines ceased all operations because of fiscal troubles in 2008. * International Lease Finance Corporation ( ILFC ) to rent six Airbus A330-300 aircraft to AirAsia X between 2013-2014. AirAsia X CEO aims at being the dominant market leader in the low-priced long-haul section.

Problem/ challenge

* Fuel is the most expensive portion of long-haul costs. and there is less range of fuel decrease per rider. Bigger aircrafts need with higher fuel cost to wing and the monetary value of fuel is fluctuant. * Product and service become more complex: programming. in-flight amusement. flight transportations and air lading. * Taxes are a immense barrier and a menace to moo cost long haul air hose. because of Air Passenger Duty raised. * Difficult to fit the fringy cost of economic system category seats in a assorted constellation aircraft of major bearers. * Labour cost is immense because of long haul air hose incurs some abroad adjustment cost and allowance. * Regulative obstruction: Bilateral understandings limit the markets when new entrant TO get down this concern theoretical account.

Scheme of running long haul low cost air hose

* Cutting labour cost: Cabin staff should be reduced in figure to the safety lower limit ( 1 per 50 riders ) . * Secondary airdrome scheme: less congestion and low user charges. some secondary airdromes update the airdrome installations to manage more riders. * Hub-and-spoke/ point to indicate: international hub can increase the demand of riders and besides have better organisation of flight programming. * Faster turnaround of aircraft: more clip in the air and less on the land avoid parking fee and other charges from the airdrome.

Mention

Francis. G. . Dennis. N. . Ison. S. . & A ; Humphreys. I. ( 2007 ) . The transferability of the low-priced theoretical account to long-haul air hose operations. Tourism Management. 28 ( 2 ) . 391-398.

Wensveen. J. G. . & A ; Leick. R. ( 2009 ) . The long-haul low-cost bearer: A alone concern theoretical account. Journal of Air Transport Management. 15 ( 3 ) . 127-133.

Victoria Moores ( 2012 ) . Long-haul. low-priced FlyA slated for 2013 launch. Retrieved October 10. 2012 from hypertext transfer protocol: //atwonline. com/airline-finance-data/news/long-haul-low-cost-flya-slated-2013-launch-0702

Luc Citrinot ( 2012 ) . AirAsia X resistless growing goes on. Retrieved October 10. 2012 from hypertext transfer protocol: //www. traveldailynews. asia/news/article/50314

Dr Peter Morrell ( 2008 ) . Can long-haul low-priced air hoses be successful? . Retrieved October 10. 2012 from Cranfield University. Web site: hypertext transfer protocol: //dspace. lib. cranfield. Ac. uk/bitstream/1826/3547/1/Can_long-haul_low-cost_airlines_be_successful-2008. pdf