Questions about transport carriers using the low-cost carriers (LCCs) business model, which seeks to offer lower fares by providing reduced services.

The term low-cost carrier (LCC) refers to a business model in which a transportation carrier, such as an airline, seeks to reduce its operating costs as much as possible so that it can charge lower fares than full-service carriers. Although many began as scrappy startups, carriers like , , , and are now among the largest airlines in the world by number of passengers carried.

There is no strict definition of an LCC nor a hard dividing line between LCCs and full-service carriers. Some full-service carriers have adopted LCC practices such as fees for telephone bookings and for checked baggage, and some LCCs have sought to differentiate themselves by offering strong in-flight entertainment features and airport lounge facilities. Some common LCC practices include

  • Single class of service, sometimes with unassigned seating
  • A mainly point-to-point network, often utilizing secondary airports, operated with a very limited variety of aircraft types, on mostly short-haul or mid-haul routes
  • Unbundled pricing — separate charges for beverages, hand luggage, etc.
  • Lack of interlining agreements with other airlines, for passenger booking or for baggage transfers
  • Lack of amenities such as airport lounges or alliance privileges
  • Simplified fare structure

Additional information

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