I know these budget airlines charge fees for every single 'amenity' in the very broad definition of the word, but I've always wondered about the economics of these very, very low-priced tickets you see in Europe.
Small airports make it work. Ryanair's model is to make small airports dependent on them, and threaten them evermore to make sure that its as cheap as possible for them.
Additionally, they were really good at hedging oil prices at good prices. (Except in 2011-12).
Finally, all of the pilots are contractors, as are many of the flight attendents, which reduces the fixed costs associated with the (legally-required) staff.
FR are also willing to kill their own margins to break competitors, which means that competing is hard.
Additionally, they were really good at hedging oil prices at good prices. (Except in 2011-12).
Finally, all of the pilots are contractors, as are many of the flight attendents, which reduces the fixed costs associated with the (legally-required) staff.
FR are also willing to kill their own margins to break competitors, which means that competing is hard.