Low cost carriers can represent an alternative for corporate travel
Low cost carriers (LCCs) are growing in number worldwide, and continue to garner interest from some corporate clients. Working with an LCC involves some similarities for buyers accustomed to contracting with legacy carriers, as well as some important differences that must be considered. Below, CWT Solutions Group airline consultants from around the world weigh in on the nuances of engaging with LCCs.
Telling the difference
The distinction between low cost and legacy carriers is less concrete today than it was in years past. Legacy airlines now break out charges for various aspects of the flight experience, and have begun to buy fuel on a hedged basis - both practices formerly conducted by LCCs alone. Meanwhile, LCCs have in some cases chosen not to charge for services that legacy airlines have begun charging for. LCCs are also experiencing higher expenses more in line with the cost structures of legacy airlines, attributable to the expiration of some of their most advantageous fuel hedge arrangements, and to increasing costs associated with mergers, acquisitions, employee relations, and more.