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What Are Discount Airlines?

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    Characteristics

    • To offset decreased revenue from ticket sales, discount airlines often charge for in-flight meals and other services, including priority boarding, seat selection and checked baggage. They tend to offer direct sales of non-refundable tickets through their websites to avoid fees and commissions paid to travel agents and for computer reservation systems. These airlines generally offer only point-to-point flights to minimize the impacts of delayed connecting flights or passengers. They usually operate one passenger class and type of aircraft to reduce training, maintenance, and service costs. Low-cost airlines have simple fare structures with prices increasing as flights become fuller, and they tend to fly to secondary airports to avoid higher landing fees at primary airports. Discount airlines also make maximum use of their planes with fast turnaround times between flights.

    Discount Airlines in the Americas

    • Southwest Airlines was the first U.S.-based low-cost carrier.Justin Sullivan/Getty Images News/Getty Images

      Founded in 1967, U.S. carrier Southwest Airlines was one of the world's first discount airlines. American discount airlines include AirTran Airways, Allegiant Air, JetBlue, Spirit Airlines, Sun Country Airlines, USA3000, and Virgin America. Canada's largest discount airline is WestJet and operates flights within Canada and to cities in the United States, Mexico, the Caribbean and Hawaii. Gol Airlines has become a significant player in Brazil's airline market, with a 37 percent of the domestic market share in January 2011.

    Discount Airlines in Europe

    • EasyJet is the U.K.'s largest discount airline.Handout/Getty Images News/Getty Images

      Dozens of discount airlines operate throughout Europe. Some of the largest low-cost airlines are based in the United Kingdom and Ireland, including easyJet and Ryanair. Ryanair offers basic amenities and flies to mainly secondary airports, such as Ciampino Airport rather than Rome's main Fiumicino Airport. Other discount carriers include Germany-based Air Berlin, Germanwings and TUIfly, Austria-based Niki, Wizz Air from Eastern Europe, the Dutch discount and holiday airline Transavia and Spain's Veuling.

    Discount Airlines in Asia and Oceania

    • Virgin Blue is Australia's second largest airline.Daniel Berehulak/Getty Images News/Getty Images

      Australia's Jetstar and Virgin Blue, and New Zealand's Pacific Blue Airlines are the largest low-cost carries based in Oceania. Many discount airlines have emerged in Asia following liberalization of the airline industry by the continent's governments. Several low-cost airlines have started operations in India since 2003, including Air India Express, GoAir and Kingfisher. Many airports in Asia, including Singapore, have designated terminals just for discount airlines as a result of the increased presence of these carriers in the market.

    Discount Airlines in Africa

    • Although the discount airline industry, and the broader industry in itself, continues to develop in Africa, the continent is home to a small number of discount airlines. Kulula.com was sub-Saharan Africa's first low-cost carrier and is based in Johannesburg, South Africa. Air Arabia, the first and largest Middle Eastern and North African discount airline, flies to more than 65 destinations in the Middle East, Africa, Asia and Europe from bases in Egypt and Morocco.

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