Therefore the FIRST chapter in this paper is going to have a look at the developments of the international airline industry in Europe. Here we are going to have a look at the historical development. It is going to be described in detail how the deregulation and liberalization in Europe happened, and what changes have been put in place. The liberalization packages are going to be described in detail, and the outcomes of the liberalisation and deregulation are going to be stated.
In chapter THREE, the LCC’s are going to be introduced. Here we are going to have a quick introduction on what ‘NO-Frill’ means in the context of air travel. Further the development of LCC’s in Europe is going to be shown. After that there is going to be a focus on the development of LCC’s in Germany. Here the airlines which operate in Germany are going to be stated, and how they have developed over the years.
Chapter FOUR is going to focus on the marketing strategy of LCC’s in Europe, and how they operate. This chapter focuses on how they operate, how they choose their network and fleet. Also important is to find out what their target market is, and how they manage their sales and pricing strategy. This chapter gives a detailed explanation on how such airlines function.
After having had a look at the LCC’s strategy, Chapter FIVE focuses on the effects such airlines have on secondary airports. Also this chapter describes what regional effects such an airport has on its surrounding.
In Chapter SIX the Airport Frankfurt Hahn stands in the centre of discussion. This chapter describes the several development stages of Frankfurt Hahn in terms of terminal or runway extension, and passenger development. Also this chapter analyses the catchment area of Frankfurt Hahn, and its infrastructure.
After having introduced the Airport Frankfurt Hahn in detail, Chapter SEVEN focuses on the regional effects of the airport. Here the development of the industry based at Frankfurt Hahn is going to be in the centre of discussion, and how they impact the development of employment. Also the region around the airport is going to be introduced, and how they are favoured positively by the airport. Finally in the chapter the impact on the tourism industry of the area is going to be discussed.
Chapter EIGHT will show the results of Chapter SEVEN in numbers.
Chapter NINE will combine all the findings, and will show the conclusions of the paper.
Table of Contents
1. Introduction
2. Developments in the International Airline Industry
2.1. Historical Developments
2.2. Deregulation and Liberalization of the Airline Industry
2.3. First and Second Memorandum of the European Commission
2.4. The Liberalization Packages of the Europe
2.5. Outcomes of the Liberalization and Deregulation Process
3. The phenomenon of Lo-Cost-Carriers (LCC)
3.1. Introduction to LCC’s
3.2. Development of LCC’s in Europe
3.3. LCC market in Germany
4. Low-Cost-Carrier Marketing Strategy
4.1. LCC Operation
4.2. LCC Network
4.3. LCC Fleet
4.4. Target Market and Customers
4.5. LCC Sales and Pricing
4.6. LCC SWOT Analysis
5. Low Cost Carrier and Effects of Regional Airports
5.1. Introduction
5.2. Effects of Secondary Airports / Definition
6. Airport Frankfurt Hahn and Regional Infrastructure
6.1. Development of the Airport
6.2. Development of the Airport Passenger Terminal’s
6.3. Development of Runway
6.4. Catchment Area of Frankfurt Hahn
6.5. Infrastructure in the Region of Frankfurt Hahn
6.6. Passenger and Cargo Development
6.7. SWOT Analysis of Frankfurt Hahn Airport
7. Regional Effects of Airport Frankfurt Hahn
7.1. Regional Social and Economical Structure
7.2. Impact of Frankfurt Hahn Airport on Employment
7.3. Enterprises at Frankfurt Hahn
7.4. Employment at Frankfurt Hahn and its Region
7.5. Frankfurt Hahn Impact on the Tourism Industry
8. Estimation of the Frankfurt Hahn Airport Economical Effect
9. Conclusion
Objectives and Research Focus
This master thesis examines the impact of the "No Frills" business strategy employed by Low-Cost Carriers (LCCs) on the regional economic development of Frankfurt Hahn Airport, focusing on how this specific airline model stimulates regional infrastructure and employment growth.
- Evolution of the European airline industry following deregulation and liberalization.
- Strategic operational and marketing characteristics of the "No Frills" business model.
- Direct and indirect economic impacts of regional airports on their surrounding catchment areas.
- Analysis of Frankfurt Hahn Airport’s infrastructure development and its subsequent role as a regional economic engine.
- Empirical assessment of tourism and employment growth linked to the airport's operations.
Excerpt from the Book
4.1.LCC Operation
The LLC operational items are closely connected to the success factors of the airlines. On one side the increase in aircraft utilisation is very important, and on the other side to design the whole process more efficient in order to cut costs. The LCC operation includes handling of passengers, ground handling of aircrafts, luggage and cargo, service, ticket distribution, fuel consumption, and utilization of cabin and cockpit crew.
LCC Service
One of the most obvious examples for LCC operation is the service offered on board compared to tradition airlines. LCC in Europe are offering a 100% no-frills service, which means that everything including beverages is on a Buy-on-board basis. Also cost-intensive services like customer support, child care, or wheelchair service are being avoided. Passengers don’t get the choice between different classes, which is one important characteristic of the No-Frills concept. This is handled similar in most No-Frills Airlines. Services like frequent flyer programmes or Bonus programmes can usually not be found on such flights.
Chapter Summary
1. Introduction: Presents the scope of the thesis, focusing on the changes in the European aviation market and the specific role of LCCs at Frankfurt Hahn Airport.
2. Developments in the International Airline Industry: Details the historical path of airline deregulation and the implementation of EU liberalization packages that enabled the LCC business model.
3. The phenomenon of Lo-Cost-Carriers (LCC): Introduces the "No-Frills" concept, its expansion in Europe and the specific development of the German LCC market.
4. Low-Cost-Carrier Marketing Strategy: Analyzes the core components of LCC business models, including fleet strategy, point-to-point network structures, and cost-efficient sales methods.
5. Low Cost Carrier and Effects of Regional Airports: Defines the economic linkages between low-cost flight operations and regional development, including direct, indirect, and induced effects.
6. Airport Frankfurt Hahn and Regional Infrastructure: Chronicles the infrastructural growth of Frankfurt Hahn and its transition into a key regional hub.
7. Regional Effects of Airport Frankfurt Hahn: Examines the tangible regional impacts, specifically regarding employment, enterprise settlement, and the local tourism industry.
8. Estimation of the Frankfurt Hahn Airport Economical Effect: Provides an input-output analysis quantifying the financial and employment contributions of the airport to the region.
9. Conclusion: Summarizes the findings, reinforcing that the LCC strategy has been a vital driver for both the airport’s success and the broader regional economic uplift.
Keywords
Low-Cost Carriers, No-Frills, Frankfurt Hahn Airport, Aviation Liberalization, Regional Economics, Airport Infrastructure, Employment Growth, Tourism, Point-to-Point Network, CASK, RASK, Airline Strategy, Regional Development, Ryanair, Air Travel.
Frequently Asked Questions
What is the primary focus of this research paper?
This paper investigates the rise of Low-Cost Carriers (LCCs) in Europe and their specific role as a driver for regional economic growth, with a dedicated case study of Frankfurt Hahn Airport.
What are the central thematic fields covered?
The central themes include airline industry deregulation, the operational structure of "No-Frills" airlines, the impact of secondary airports on regional economies, and the specific infrastructural and economic developments at Frankfurt Hahn.
What is the main objective of the study?
The primary aim is to analyze how the marketing and operational strategy of LCCs has influenced the development of Frankfurt Hahn Airport and the subsequent regional economic benefits for the surrounding area.
Which scientific method is utilized in this paper?
The author uses a combination of literature analysis regarding aviation economics and a quantitative approach through an input-output analysis to estimate the economic and employment effects of the airport.
What topics are discussed in the main body?
The main body covers the history of aviation liberalization, the specific business model of LCCs (fleet, network, pricing), and a comprehensive regional analysis of Frankfurt Hahn, including employment statistics, tourism data, and infrastructural investments.
Which keywords characterize this work?
The work is characterized by terms such as Low-Cost Carriers, No-Frills, Regional Economics, Frankfurt Hahn, and Aviation Liberalization.
How does the point-to-point network differ from the hub-and-spoke system?
Point-to-point networks prioritize direct connections between cities to increase efficiency and decrease turnaround times, whereas hub-and-spoke systems aggregate traffic in central airports to serve a wider range of global destinations.
What role does Ryanair play in the development of Frankfurt Hahn?
Ryanair is identified as a critical success factor, being the primary airline to establish a base at Frankfurt Hahn, which led to a massive increase in passenger numbers and facilitated regional infrastructural growth.
Why are secondary airports essential for the LCC business model?
Secondary airports offer lower handling fees and are typically less congested, which allows LCCs to achieve shorter turnaround times, reduce fuel consumption, and maintain the low-cost structure necessary for their pricing strategy.
- Quote paper
- BSc MBA MA Daniel Döring (Author), 2009, The “No Frills” Strategy of Low-Cost Carriers, Munich, GRIN Verlag, https://www.grin.com/document/138755
