Glossary

What is Low-cost carrier?

A low-cost carrier is an airline whose model rests on a low base fare, unbundled extras and high aircraft utilisation.

A low-cost carrier is an airline whose model rests on a low base fare, unbundled extras and high aircraft utilisation.

Also called: LCC, Budget airline.

How it works#

The model produces the familiar differences: no interline agreements, so no rebooking onto other airlines during disruption; bags, seats and changes cost extra; and the schedule offers no connections. Statutory passenger rights apply unchanged, what differs is how much self-help is needed, not the entitlement.

Not to be confused with#

A low-cost carrier is not the same as a network airline’s basic fare, which sits inside a network with connections and partner agreements.

In German#

The German term is Billigflieger. German version of this term

  • Ancillary revenue: Ancillary revenue is income from services stripped out of the ticket price and sold separately, such as bags, seats or changes.
  • Point-to-point network: A point-to-point network is a model in which an airline links cities directly and does not plan connecting itineraries over a hub.
  • Basic economy: Basic economy is a network airline’s cheapest fare, with baggage, seat selection and changes stripped out of the price.

Articles that use this term#

TopicEvery article and term onBooking and flight search.
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