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Discussion

LCC can be defined as low-cost carrier or low-cost airline it is also known as no-frills, discount or budget carrier or airline. Now, this is a means of transport characterized by lower fares and fewer comforts to make up for revenue lost in decreased ticket prices.

LCC can be managed in the following ways;

Fleet- LCC’s should own relatively newer aircrafts of a single type this will help in reducing training as well as maintenance. Besides that the use of younger fleets is fuel efficient.

Network- by using point to point model, LCC’s stay away from busy and expensive hubs and this allows for them to operate and manage smaller airports through which delays and ground times are reduced.

Marketing and human resource- LCC’s require less marketing because their fares are low other than that most of their tickets are sold through their website thus reducing commission costs on sales through travel agencies.

In-flight services- in comparison to other carriers LCC’s don’t offer all services offered like free meals and drinks nevertheless if you want these services they are available at an extra price.LCC’s have an impact and affect the supply chain with the kind of services they offer. For one their fares are reduced and this is in comparison to other carriers therefore attracting large numbers without having to market themselves adversely. Other than they are able to meet the demand for their services despite their low prices.

LCC’s have an impact in advanced supply chain operations because in every market where goods and services are being traded there is competition and therefore there is futility of prices among others.