Thursday, July 19, 2007

Low Cost Airlines?

The EU is aiming at low-cost airlines, with its newest proposal, which would force carriers to disclose the full price of a ticket. Air travel providers, such as Ryan Air, traditionally left out airport or security taxes from its advertised prices.
This would be a marketing disaster for many cheap carriers. Their transport is usually considered to be a hassle, with low service. Often times they don’t operate from major commercial airports, resulting in additional transportation charges for consumers. Their main selling point being the low advertised prices, customers might turn to more mainstream airlines, now that the actual travel costs have to be made public. No doubt the prices will still be very competitive and much cheaper than say, Lufthansa, but some might not agree that the price difference is worth the large gap in value.

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