First, compare fares and product offerings of low-cost-carrier and a comprehensive network carrier from either the U.S. or Europe. Select your choice of airlines from each category and a market that both serve. From each carrier’s website, find the fl

Low cost VS Comprehensive 4

Ryan Duckworth

Nov 27, 2013

Airline Management

Embry- Riddle Aeronautical University

Module 6 assignment: Low cost VS Comprehensive

1. First, compare fares and product offerings of low-cost-carrier and a comprehensive network carrier from either the U.S. or Europe. Select your choice of airlines from each category and a market that both serve. From each carrier’s website, find the flights and fares offered by each about three days and one month in advance of your research date.

Comprehensive Airline- Delta Air Lines

Low-cost-carrier- Virgin America

Route- Los Angeles (LAX) to New York Kennedy (JFK)

Product offerings-

Delta- Economy comfort upgrade available for a fee***

Priority seats upgrade available for a fee (exit seats, behind economy comfort)

Free snacks and beverages

Meal is available for purchase

WiFi available for a fee

Aircraft equipped with satellite TV for free & movies for a price

Boeing 757 or 767

*** Economy comfort gives passengers of up to 4 inches extra legroom, more recline, free premium snacks, prime seat location (in front of economy cabin), and priority boarding in zone 1.

Virgin America- Main cabin Select upgrade available for a fee***

Free snacks and beverages

Meal is available for purchase

WiFi available for a fee

Aircraft is equipped with satellite TV & Movies

Airbus A320

*** More leg room, select complimentary food and drinks, free entertainment, dedicated luggage space and priority check-in.

2.Compare and contrast the ticket prices and product offerings of the two airlines. Use care that the fares are comparable by examining ancillary charges. What conclusions do you draw about pricing and products?

Based on the research I have done, both airlines offer the same fares, after taxes. Both airlines charge $25 for first check in bag. Delta charges $35 for second bag and $100 for third bag. Virgin America is $25 for 1st to 10th bag checked in. Both airlines allow 50lbs per bag. 51lbs-70lbs on Delta is $100 and $50 on Virgin.

As a customer I would choose Delta only because I know the airline, and I know that they would treat customers with great respect. I am not saying that Virgin America doesn’t have great customer service, I am just not experienced with their service so I do not know what the expect.

In conclusion, what I have gathered is that in the USA, low-cost and comprehensive carriers don’t really exist anymore. Airlines are competing against each other, so they will do whatever they can in order to survive. Many low cost carriers have pricing as high or as low as comprehensive carriers. Comprehensive carriers also are now down to the level of low cost carriers as they are charging for a lot of items they used to give for free. A great example of low cost carriers would be in Asia. Many carriers there will offer tickets as low as $70 one way for flights that are 4+ hours. However, they do charge for beverages, seat selections, meals, luggage check ins, etc. All the added fee will add up, which will end up almost if not the same price as comprehensive carriers.

Reference:

Airline Tickets and Flights to Worldwide Destinations - Delta Air Lines. Retrieved November 27, 2013, from http://www.delta.com

Plane Tickets, Flights And Airfares | Virgin America. Retrieved November 27, 2013, from http://www.virginamerica.com