Soaring Budget Airlines

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(By Kirsty Needham)

JetBlue Airways LogoPLANS by Qantas to introduce a
low-cost domestic airline to compete with Virgin Blue
come as no-frills airlines revolutionize air travel
worldwide.

With no tickets, seat allocation, frequent flyer
points, refunds or free meals, and turn-around of
aircraft within 30 minutes, the services can seem more
like a bus shuttle.

According to the website http://lowcostairlines.org ,
there are 34 no-frills airlines in Europe, 13 in the
United States and five in Asia, and the list is
growing.

Air New Zealand introduced a no-frills service to
Australia last week, due to begin in October.

Passengers have been warned to "bring a good book"
because there will be no free newspapers and
magazines. Children's meals and infant supplies also
will not be available. The cheapest "use it or lose
it" fares mean passengers who miss their flight have
to pay for another ticket. No changes can be made to
fares.

Since Air New Zealand started a domestic no-frills
service a year ago, passenger numbers had risen 23
percent, the airline said.

In the United States, Delta Air Lines introduced its
Song service in April, with self-service kiosk
check-in or the option of passengers checking in at
home up to a day in advance and printing their own
boarding pass. Free soft drinks and water are
available, but passengers pay for food.

No-frills JetBlue and budget pioneer Southwest were
reported to be the only US airlines to make a profit
last year. JetBlue enjoyed passenger growth of 71
percent.

In Europe, passenger numbers on ticketless, foodless
easyJet rose 75 percent last year with a service that
sells one-way fares online, and does not offer refunds
or alterations.

A downside for passengers is that many low-cost
airlines avoid hefty landing fees by choosing small
airports that may be far from the destination city. In
Europe, Ryanair has attracted complaints because its
flights to Frankfurt land in Hahn, about 100
kilometers from Frankfurt.

Flight Center's managing director, Graham Turner, said
the international experience showed there was a big
opportunity for new-style airlines to make money.

Regardless of whether they had to pay for food,
consumers would book with discount airlines if they
met basic requirements on leg room, and the food was
edible, Turner said.

"Many so-called full-service carriers have coffee that
is undrinkable," he said.

But he questioned whether the Qantas proposal was
"mutton dressed up as lamb".

"It has to be a new model, not the old Qantas model
without the unions."

Qantas frequent flyers traveling on Australian
Airlines - its Asian "low-cost carrier" - have found
themselves refused entry to Qantas Club lounges.

Qantas said that apart from this, and restrictions on
earning points, the service on Australian Airlines was
no different to that on regular Qantas flight.

Analysts believe Qantas will be more ruthless in
reducing onboard and other services on a domestic
discount carrier.

The founder of http://frequentflyer.com.au  , Clifford
Reichlin, said it was likely a no-frills Qantas
domestic airline would not cater to frequent flyers.

"Competition is always a good thing, provided they
lower their cost structure to offer competition on
fares. Otherwise they will recoup it somewhere else.
Qantas travel will become premium paid." -The Sydney
Morning Herald

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