The Higher Overhead Of A Full-service Carrier And The Risk Of Brand Dilution Make The Implementation Of A Basic Economy-type Product Unfeasible For Most International Airlines.

Provided by Business Insider United Airlines cabin crew In Europe and Asia, there is a clear delineation between full-service and low-cost carriers. Airlines such as Ryan Air, Easyjet, Norwegian, and AirAsia dominate the low-cost market. The mainline international carriers have generally refrained from introducing discountcabin products aimed directly these low-cost competitors. The higher overhead of a full-service carrier and the risk of brand dilution make the implementation of a basic economy-type product unfeasible for most international airlines. Instead, airlines such as Air Canada, Singapore, and Qantas have created separate budget airlinessuch as Rouge, Scoot, Tigerair, and Jetstar that operate under different business models with lower overhead to address the low-cost carrier threat. America's three legacy carriers also happen to be the three largest airlines in last minute flights to las vegas the world each operating anywhere between 720 and 950 mainline aircraft. In addition, they have the benefit of an absolutely massive and relativelycaptive domestic market that doesn't really exist anywhere else apart from perhaps, China. As a result, the sheer size of their operations and highdemand for domestic travel creates such economies of scale that negates much of the concern over brand dilution and overhead. However, this doesn't mean America's legacy carriers have tried this strategy as well. Two of the best examples happened in the last 15 years. In 2002,Delta launched Song a low-cost boutique carrier aimed directly at JetBlue.

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