How #LowCost #Airlines help the #Economy in a #Recession
Low cost airlines have been known to pinch a penny or two, but this business model has proven successful to bolster the economy when facing a recession.
As we have seen in the last few years, a recession has a huge effect on the travel industry. When people make less money, they are quick to cut out vacations, and instead opt for “staycations.” As the travel industry slows, low cost airlines see this as an opportunity to explore new routes into regional airports, and service the vacation and business world with low fare tickets.
These new routes bring millions of dollars to the economy through leisure travel and business markets. Low cost carriers are normally the first ones to try new routes after, or during a recession, often times with the helps of local subsidies. As the market begins to bounce back, legacy carriers will look at the success of low cost airlines new routes and plan accordingly.
Next time you think of flying, be sure to realize the full economic impact low cost carriers have of the economy before worrying about the price of an additional bag.
To learn more about low cost airlines, and hear from a number of airline executives, be sure to check out Low Cost Airlines World Americas 2011.
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Technorati Tags: Low Cost Airline,Regional Airoprt,Leisure,Travel,Business,Economy,Recession,Subsidy,Staycation,Allegiant,Vision,Southwest
at 11:28 am
I am reading this for the first time that Airline business has maintain the good condition even in case of recession also. Its really good news, that imbalance in global economy has not affected the airline business at least.
at 2:31 pm
Hi Mike! Thanks for the response. I believe the global mindset now is to travel (albeit on a budget) to help spur the economy and keep sanity. It is great news to see the airline business expanding, and not shrinking, when the economy fluctuates.