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At your Leisure - 01 March 2004

Low Flying Fares

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

Low Flying Fares mind map - linked to larger version

View larger version of the mind map.

Low Flying Fares

  1. Main UK Operators
    • EasyJet
    • Ryanair
    • BMI Baby
    • MyTravelLite
    • Air Scotland
  2. How Do They Do It?
    • Subsidies
      • Aviation fuel tax exempt
      • Air fares are VAT exempt
      • Duty-free for non-EU travel
      • Cap on landing charges
    • Incentives
    • Using cheaper airports
    • More frequent flying
    • Online and telephone booking
    • Ticketless booking system
    • No free meals and drinks
    • No specific seats
    • Less central check-in
  3. UK Passenger Number Growth
    • 50 million passengers in 1980
    • 90 million passengers in 1990
    • 180 million passengers in 2000
    • 500 million by 2030
  4. Market Leaders
    • Market Concentration
      • May 2002 EasyJet took over Go (originally part of BA)
      • January 2003 Ryanair took over Buzz (part of KLM)
  5. European Regulation
    • European Commission investigating Charleroi airport's incentives to Ryanair
    • Controls over pollution
    • Unfair to other modes of transport
  6. Incentives
    • Sweeteners from Airports
      • Subsidies offered to budget airlines to boost regional economy
  7. Origins
    • Southwest Airlines