High capacity utilization: The more low-cost airlines can increase seat occupancy rate, the higher the capacity utilization and the lower the prices for fliers.
c) Economies of scale: By providing bulk orders to Boeing and Airbus, such airlines can negotiate better prices, thereby reducing their expenses.
d) Streamlined product design: By limiting the fleet to only a few standard designs, the low-cost carriers do not require a vast variety of spare parts which can help to reduce their maintenance costs.
e) Fuel price fluctuations: Adopting hedging techniques against fuel price fluctuations can help in avoiding unnecessary increases in ticket prices, which can help the low-cost carriers to maintain their cost advantage.
what metrics can you use and financials for each example listed? (involve any statistical relevance to prove these points)