Choose one element of an archetypal low-cost-carrier business modelfrom the list below.Explain how it reduces cost compared with a large...

Choose one element of an archetypal low-cost-carrier business model from the list below. Explain how it reduces cost compared with a large international network airline. Why do global network carriers not incorporate this element into their business model?

Low-cost carrier business model characteristics (IATA, 2006):

• Primarily point-to-point operations.
• Serving short-haul routes, often to/from regional or secondary airports.
• A strong focus on price sensitive traffic, mostly leisure passengers.
• Typically one service class only, with no (or limited) customer loyalty programs.
• Limited passenger services, with additional charges for some services (e.g. onboard catering).
• Low average fares, with a strong focus on price competition.
• Different fares offered, related to aircraft load factors and/or length of time before departure.
• A very high proportion of bookings made through the Internet.
• High aircraft utilization rates, with short turnaround times between operations.
• A fleet consisting of just one or two types of aircraft.
• Private-sector companies.
• A simple management and overhead structure with a lean strategic decision-making process.