How Budget Airlines Work | Wendover Productions

0:00This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online makes sense? There's no place like Chrome. Check responses set up require compatibility and availability varies 18 plus. This episode is brought to you by Palm Olive. Family time isn't just the big moments. It's weeknight dinners, sitting around the table, everyone talking all at once. So when the plates are empty and the sink is full, use Palm Olive Ultra. Palm Olive's most powerful formula removes up to 99.9% of grease, leaving your dishes sparkling clean. And the new convenient pump makes cleaning even easier so you can spend less time tackling dishes and more time together. Shop now at palmolive.com. Propel Fitness Water With Gatorade Electrolites, Zero Sugar, and Vitamins,

1:01Propel hydrates better than water to help you get the most out of your workout and get back to your best self. What propels you? Propel with Gatorade Electrolites. Two weeks ago, I posted a video on why flying is so expensive and people seem to like it. However, they wanted to know how our budget airlines so cheap. Well, it's another complex answer, but an interesting one. For the purposes of simplicity and to keep our European friends from feeling left out, we'll focus on the European model of budget airlines. While there are low cost carriers in North America, South Africa, India, Asia, and plenty of other places, budget airlines were really first successful in Europe and that's where they're still most prominent today. The magnitude to which airlines like Ryan, Aaron, EZJET reduce the cost in Europe is also much more significant. Budget airlines in the US might be 10 or 20% less expensive than their traditional competitors. While in Europe, a fair on a budget airline might only cost half or a third of what you would pay on a normal airline.

2:03You can regularly find two to three hour flights on budget airlines for less than 10 euros. So how do they work? Well, unsurprisingly, budget airlines essentially take every expensive part of the flight and make them less expensive. The most essential thing an airline needs is airplanes and it is possible to spend less on those. In the months and years following 9.11, the growth of air travel stalled and most airlines were simply fighting to survive. Meanwhile, Ryanair was thriving and placed a massive order of 151.737s from Boeing at unbelievably low prices. A circumstance like that luckily isn't frequent but budget airlines can place large orders at any time which gives them a bulk discount. It might seem weird that a budget airline would buy brand new airplanes but the newest planes are the most efficient which saves fuel. The fuel efficiency of new aircraft offsets the higher purchase price. So easy jet, jet blue, Ryanair and spirit airlines all have younger fleets than any major airline.

3:06Budget airlines will also typically have only one type of plane. Ryanair only operates 737s and easy jet only operates the A320 family. Having only one type of aircraft means that pilots, flight attendants, mechanics and ground staff only need to be trained on one type of aircraft which saves an enormous amount of time and money. Within the planes, budget airlines will often avoid luxuries to keep costs down. Ryanair seats for example, don't recline because that increases the initial purchase price for seats and also requires more maintenance. The seat design also saves time for flight attendants since there are no seatback pockets to clean between flights. Flight attendants on budget airlines are often the beginning of their careers and receive little training. Of course they'll get the required safety training but only minimal hospitality training. They'll also often serve multiple roles. While on the ground, some of the flight attendants might go to the gate and check tickets while others clean the airplane. Through this, the airline eliminates three or four

4:07positions that they would regularly pay for. On board, flight attendants are of course responsible for food and drinks which are almost never free. On board service can be an excellent way for airlines to make money. Many budget airlines also do duty free sales and Ryanair even sells lottery tickets. Let's talk airports. You're never gonna see Ryanair flight a London Heathrow or Paris Charles de Gaulle because those airports are expensive. There's only a set amount of flights per day that can operate out of them. So supply and demand dictates that landing fees are high and slots are regulated. Instead, Ryanair flights to Gowick, Stan Set or Luton in London or Bove in Paris, which by the way, is an 80 minute bus right away from Paris, isn't technically in the same region of Paris and has a website that looks like this. In a lot of cases, Ryanair or other budget airlines are the only or one of a few airlines flying out of an airport, which gives them huge negotiating power. Often they will take a small regional airport a ways away from a city and rebrand it

5:09as another city airport. If they can... This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up require compatibility and availability varies 18 plus. This episode is brought to you by Palm Olive. Family time isn't just the big moments. It's weeknight dinners. Sitting around the table, everyone talking all at once. So when the plates are empty and the sink is full, use Palm Olive Ultra. Palm Olive's most powerful formula removes up to 99.9% of grease, leaving your dishes sparkling clean. And the new convenient pump makes cleaning even easier so you can spend less time tackling dishes and more time together. Shop now at Palm Olive.com. Propel Fitness Water. With Gatorade Electrolites, Zero Sugar, and Vitamins,

6:12Propel hydrates better than water to help you get the most out of your workout and get back to your best self. What propels you? Propel with Gatorade Electrolites. And ask for lower landing and takeoff prices and if the airport doesn't comply, just leave. And the airport will essentially cease to exist. If there isn't a viable cheap airport available around the city, budget airlines can also flight a regular airports at less busy times when landing fees and the chance of delay might be lower. Now let's get into the nitty gritty. The planes of budget airlines tend to operate all day nonstop. For example, in one day, this Ryanair plane went from Brussels to Copenhagen, Copenhagen to Brussels, Brussels to Prague, Prague to Brussels, Brussels to Niem, Niem to Brussels, Brussels to Trevioso, then finally Trevioso to Brussels. Budget airlines will schedule only 30 to 45 minutes between the landing of one flight and the takeoff of another, which often leads to delays and leaves very little time to clean the aircraft.

7:14This does, however, mean that the airplane is always making money and passengers are not paying for time it's sitting around. Everyone nearby Southwest doesn't have reserve seating. Well, by having a first-come, first-served system for seats, people almost always show up to the gate early and line up in an orderly line. This way, less time is spent on the ground boarding and more time in the air flying. Another principle of budget airlines is the point-to-point model. Most traditional airlines have hubs where most or all of their flights go in and out of. British Airways has London, Air France has Paris, KLM has Amsterdam. To get to most places on these airlines, you have to connect through their hubs. Budget airlines, on the other hand, try to have a lot of destinations from everywhere. That does mean, however, that many destinations are served only a few times per week. The cheapest budget airlines don't even allow for connections between their flights. Allowing connections adds costs because then you have to pay for ground cruise to transfer bags, create a more complicated ticketing system,

8:17and pay to rebook a passenger if a delay in their first flight makes them miss their second. Speaking of ticketing, there's often no way to get a ticket from a real person on budget airlines. Ryanair charges 45 pounds if you fail to print your ticket at home, and EasyJet and some other carriers have almost all their check-ins handled by machines. This, once again, cuts down on personnel costs. At the airport, these budget airlines won't bother using jetways because they're expensive. They'll use steps and just have passengers walk across the tarmac or take a bus to the plane. Budget airlines make a lot of money, if done right. EasyJet, Ryanair, and WizAir all have higher profit margins than Lufthansa, British Airways, and Air France. Many of the traditional airlines have unionized workers with salary agreements that cannot be changed, while budget airlines can hire anyone and train them in a few months. It's also hard for these traditional airlines to grow. Any route they make has to be won with a lot of pre-existing demand,

9:18since much of their business comes from business travelers. Since budget airlines are targeting more towards tourists, any destination that Ryanair, for example, opens up in, will become a popular destination just because it's possible to get there for so cheap. Some traditional airlines in Europe are opening their own budget airlines to get in on this profit. Air France creates from Savia and Lufthansa created euro wings, both of which are losing massive amounts of money. What they seem to forget is that the US went through this budget airline within an airline phase a couple decades ago. Delta created song, which failed. US Airways created Metroget, which failed. UnitedAcreage Shuttle, which failed. Then they went into bankruptcy and decided they should try again and make Ted, which failed. None of these worked. The reason Ryanair and EasyJet are able to succeed where others have failed is larger because they are so large and flexible. They have hundreds of planes, hundreds of destinations, thousands of employees, and negotiating power

10:19that allows them to overpower competitors. In the end, for us consumers, any competition is good competition. Even failing budget airlines will bring down the cost of traditional airlines and allow us to travel the world for less. Thank you for watching. I hope you enjoyed this video. Make sure to click subscribe and follow me on Twitter at when to reprote. If you want to discuss this video with me and others, I'll link the first Reddit thread of my video here. I'll be back next week with another episode from that Wikipedia list. Fall has never looked or tasted this good. Sweet Greens Fall Harvest Menu is back with seasonal favorites dressed to impress and made to be devoured. Warm roasted sweet potatoes, crisp apples, maple glazed brussels, and crave worthy flavors in the autumn harvest bowl, maple glazed salmon plate, and roasted bacon brussels side. The season's most desirable menu has returned to sweet green, featuring Fall's best dressed. Make your move. Order on the sweet green app.

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