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LCC (Low Cost Carrier)

Definition: An LCC is an airline that operates with a low-cost business model, focusing on minimizing operating expenses to offer cheaper fares. LCCs often charge extra for services like baggage, meals or seat selection, prioritizing affordability over luxury.

Examples: Ryanair, Southwest, Spirit, Indigo, SpiceJet, Akasha and many more.
Business Model:

  • Unbundled pricing (pay for bags, seats and food).
  • High aircraft utilization (quick turnarounds).
  • Secondary airports to reduce costs.
  • Difference from Full Service Airlines: No free meals, limited baggage and strict cancellation policies.
  • GDS Integration: Some LCCs are not in traditional GDS and require direct API integration.

Impact: Democratized air travel but introduced "hidden fees."


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