The Low-Cost strategy

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Choosing a low-cost strategy means taking decisions regarding your marketing, your employees and your staff toĀ make economies of scale and gainĀ a competitive advantage.

How to get started?

Information:

Some researches can increase your low-cost demand in Economy class. If you want to concentrate your strategy on First or Business low-cost, it is maybe not a good idea…

Opting for a low-cost strategy mayĀ meanĀ choosing a departure hub close to a city with a high annual passenger traffic. But don’tĀ get it wrong, asĀ in this case it is very important to perform external audits on different hubs of the region to know which one has the lowest taxes. Charges reduction come withĀ low-cost… and it is not insignificant. Besides, it could be a good idea to perform external audits onĀ the destinations you will choose.

To increase the capacity of low-cost passengers, you mayĀ configure your aircraft so they haveĀ an important proportion of economy seats. But remember to keep an eye on the remaining demandĀ too. As forĀ purchasing or leasing, the choice is yours…

It’s up to you to change prices by decreasing the economy ticket prices within reason, it may increase the demand in some cases.Ā Don’t hesitate to perform price simulations before changing your prices, this way you can see what effect results from your change without waiting a full day.

What choices canĀ IĀ make?

Information:

Some researches can increaseĀ your low-cost demand for the Economy class. If you want to develop a strategy focusing on low-cost business or first class, it might not be a good idea…

You can make some choices in the R&DĀ to reduce your costs, for example in:

  • General research:

Reduce the cost of audits by hiring less qualified staff.

 

 

  • Services research:

Develop your low-costĀ servicesĀ to offer services related to your low-cost strategy.

  • Aircraft research:

Develop the multiple aircraft research so you can make group purchase and benefit from discounts.

 

 

  • Cargo research:

If you have unlocked the cargo option, you can develop basic researches to improve your low-cost cargo strategy.Ā 

 

Important note:

The researches listed above are only indicative. It is not always a good thing to develop everything, it’s up to you to take the good decisions for your airline.

Alliances, low-cost partners

 

Joining an alliance can also help you receive valuable advice from more experienced players and enable you to benefit from hub sharing or aircraft group purchase toĀ do substantial savings.

 

Important note:

The alliance feature is only available forĀ the web version of the game.

 

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