Do low-cost airlines really cut it???

With Budget airline popping up left right and centre in both domestic and international markets the question has to be asked, if they really are providing cheaper fares than full fare airlines. While it is true the increased competition has certainly forces full-service carriers like Qantas to be more cost competitive, does choosing to book with a discount carrier instead of a traditional full service one actually result is a cheaper flight overall.

It is true that budget airlines are cheaper in you are genuinely happy to forego all the extras which they charge for, however don't be fooled simply by the quoted internet fare as there are a number of add-ons, booking fees and hidden charges which quickly bring the fares of budget carriers much closer. For example observe the following tables comparing the four main carriers in the Australian aviation market (Qantas, Virgin Blue, Jetstar & Tiger Airways).

In the following scenario, the quotes base fare as at the carriers website has been listed (from a snap-shot on 07/07/09). Then some of the common hidden charges have been added to observe the difference between using the same services whichever carrier you choose to fly. It has also been assumed that a person will still eat and drink on the flight by purchasing a sandwich and drink where they are not included.

The results of a number of several randomly chosen routes (3 Domestic, 2 International) are shown below:

Click on the following tables to enlarge...

While in most cases the budget carriers do provide cheaper fares, by the time any extras are added in the cost difference is much less. In particular on international routes often due to hidden taxes and booking charges the full service carrier may even prove cheaper as with Qantas (SYD-SIN). Other factors to consider are that budget carriers do not always fly the most direct route meaning additional baggage costs for each sector quickly offset a cheaper base fare. Also you spend more time spent sitting on a plane and in airport lounges and less at your destination.

Overall if you are happy to fly without the extra ad-ons, budget carriers may provide you with a cheaper fare, however often as soon as you begin to add one or two extras onto your base fare you may find full service carriers a much more competitive option. While I'm not advocating one particular airline over the other the moral of the story, as with many other things in life, is to "shop around". Budget Airline does not always mean cheapest and a few extra minutes just visiting the websites of the other airline may reward you with a better deal.