The current climate of European aviation is complex as one sector is performing highly well, and the other sector is low-cost and no-frill carriers. The flag carriers are experiencing high issues and severe difficulties about the cutting staff and routes, low-cost service sectors that continue to expand at the number of tremendous paces. In the previous researches, the evidence for low-cost carriers is becoming highly dominant for the intra-European and point to point routes(Hansen, Gillen, & Djafarian-Tehrani, 2001). The expansion of low-cost carriers will induce an impact on the traditional airline routes and contains a network of the hub and spoke in the European industry. The chief difference between the traditional airlines and low-cost airlines falls into three classifications and three groups including operational savings, service savings, and overhead savings. The low-cost airline tends to have the main focus on the short-haul routes that are generally less than 1,500 km(Uittenbogaard, 2009). The low-cost operation is based on the cost per passenger required and the type of carriers needed. The maximum passengers are loaded in the aircraft with a maximum capability of luggage and fly the aircraft. The competitive advantages are derived from the productivity of aircraft and paramount importance is dependent on the combination of using uncongested point to point services. The services are provided through secondary airports and there are two main advantages of using secondary airports(Diaconu, 2012). These airports are larger and tend to have fewer airlines in the services. These airports in Europe are less busy and therefore delay in services is due to congestion. In addition to other factors, low-cost airlines operate through a single type fleet. The services are dependent on the cabin crew operation and pilots. Another key area is the low-cost airline that gains competitive and cost advantages over the distributed network carrier. The advantage to customers is significant cost saving as the services are selling directly to the customer through the call centers and the internet by having electronic ticketing. The travel agents are also involved in low-cost airline services and they work for the agency commission to avoid any system reservation system(Lu & Pagliari, 2004).

The airline deregulations are becoming a major issue that has been getting more attention from customers. The aim of the present work is to analyze the impact of low-cost services particularly the social impact of the low-cost airline industry. The low-cost airline services of Europe have an impact on the planning issues. The emerging trend of low-cost services in the travel market boosted the air travel demand without increasing the competition(Vidović, Steiner, & Babić, 2006). The present research considers some case studies to illustrate the social impact of low-cost services, complementary systems, and improved theoretical network ideas. It is dominating that the low-cost services are attracting passengers from larger distances and spread out the effect for benefits. The thesis concludes the social impact of low-cost services on the customers and services providers.

Background of low-cost services of Social impact of low-cost airlines in the European airline industry

The regulation of the Chicago convention played a crucial role in the development of civil aviation. All the airline's services were controlled by the national authorities. In 1978, in the United States, the deregulation of the aviation market was first introduced, and it opened the new era of airline services. After that, the airline companies were able to reconsider and reorganize the management structure to get more profits and compete with the requirements. The first package was initiated in 1987 and the second package was initiated win 1990, the third package of low-cost services was initiated during 1992 (Akgüç, Beblavý, & Simonelli, 2018). The first services were provided by the Southwest airline company and they introduced a new strategy of fewer services at lower prices to the customers. The strategy bloomed suddenly in the air transportation market of the United States and Southwest Airlines settled the strategies for next services, nowadays the services are called low-cost airline services. The model was later referred to as "The low-cost model”(Dobruszkes, 2006).

In 1993 the deregulations in Europe resulted in new airline services that used similar strategies and models as introduced by the Southwest airlines. The first low-cost services of Europe were introduced by Ryanair and EasyJetand both companies were successful in launching the scheme. These two companies are the leading low-cost airline services in Europe and the services have been increasing rapidly. Some of the other paradigmatic examples of air transport are the gradual approaches of EU airlines. On April 1^st, 1997 the proposed single internal market worked within the 15 member states of Europe including Norway, Finland and others(Maxim, 2012). The process is different from domestic airlines. The low-cost model is the deriving model in the business that is driving organizations towards low-cost airline services. The origin of the model is the US-based southwest airline company. The focus of the model is to reduce the cost and provide basis airline services to the customers(Akgüç, Beblavý, & Simonelli, 2018). Francis et al (2006) pointed out the low-cost services and core features are minimum cabin crew, high aircraft utilization, one class of seating, secondary airports, short turnaround times, flexible working conditions and terms, the passenger has to pay for the services of drinks and food, and e-ticketing. There is a number of factors that provide benefits to the low-cost model and services. The highly efficient investment, lower charges, simplicity, less extra investment are the basic requirements(Mandic, Teklić, & Petrić, 2017; Akgüç, Beblavý, & Simonelli, 2018).  

Low-cost services in European airlines of Social impact of low-cost airlines in the European airline industry

In European airline services, the low-cost carrier has significant characteristics that can be distinguished by diverse charter operators. The airline companies in the three categories can be determined on the basis of the quality of services provided to the customers(Icao. int, 2003). The three types of categories of services can be listed as below,

1.      Transavia, Jet2, and Airberlin

2.      Ryanair, EasyJet, Wizz Air, and Norwegian

3.      Full-service carrier subsidiaries, for instance, Germanwings and Vueling

This list of companies is classified on the bases of low-cost carriers. The criteria for the selection of the companies are dependent on the services and remarkable differences in all the companies. From all the airline services, there are 20 selected airlines that provide substantially different sets of low-cost carriers. The selection of companies in the categories is not only based on the cost of services but also depends on the geographical dimensions. From the services, it is obvious that the EU12 is a different set of low-cost carriers as compared to EU28 and European Economic Area (EU12+3)(Martín & Román, 2008). The third factor of defining the level of services is the time dimension that contributes to the low-cost carrier selection. Europe provides services through 43 low-cost carrier airlines. Between the region of 1992 to 2012, there were 33 companies that left the market. The time frame is different for services and it matters in the analysis. The low-cost services are getting more penetration and demand in the market and have an impact on the direct competition, market shares, and parallel or semi-parallel routes(BURGHOUWT, LEON, & WIT, 2015). From 2001 to 2013, the shares of the low-cost market in Europe was increased from 3% to 27%. The low-cost services are contributing strongly to the growth of market share with low fare demand. The objective of the low-cost airlines in Europe is to meet the strategic development under the planning of think tanks. The objective is to help the company and customers at a global level and to ensure the contribution in the economic growth, social inclusion, environmental protection, well-beingness as well as the preservation of human life. The increase in services increases the competition between service providers and the benefits remain conserved(Francis, Fidato, & Humphreys, 2003). The benefits and social impact increases with reducing the cost of services as it led to more social benefits to the customers. The cheap airline services present more benefits to the customers and the local community. The present research address a couple of research areas and research questions such as what are the effects of low-cost services on large and small scales? How the authorities are developing strategies in the planning process. The study purses the investigation about how the planning changed at different levels(Hansen, Gillen, & Djafarian-Tehrani, 2001; Francis, Fidato, & Humphreys, 2003). 

Impact of low-cost services of Social impact of low-cost airlines in the European airline industry

There are different effects of low-cost services such as airlines, flight crossing in the European continent, destination, and another phenomenon. Some studies have already concluded that low-cost airline services are making changes to the new employment, tourism industries and labor market of the European Union. According to the European Low Fares Airline Association (FAA), there are different social benefits of low-cost airlines in Europe that contribute to the economy of Europe, tourism and employment opportunities. Furthermore, the research concluded improved cohesion of low-cost airlines in the European Union(Akgüç, Beblavý, & Simonelli, 2018). The services enhance the quality of life of European Citizens. The opportunities improved cohesion and enhanced the quality of life in the European Citizens. Button and Vega (2008) also investigated the impact of low-cost airlines on the migration pattern and how the services can be improved through the sequential and temporary migration process. The increase in migration induces an impact on the social community. For instance, during the past few decades, traveling between Finland and Poland was increased due to the implementation of low-cost services provided by Ryanair airlines(Mandic, Teklić, & Petrić, 2017). The research shows that low-cost airline is getting more attraction from the passengers as they are from long distance and work in the bigger cities. The research also identified the increasing interest of business people across the border. The statistical analysis conducted by BBC news demonstrated that the mortgage lender of Europe is changing due to cheap and low-cost airline services. The cheap services are opening new routes to bring the people. It is also observed that the low-cost services are opening new possibilities to the real estate markets because some of the new destinations are off the popular destination lists in the areas of cheaper estates and offer non-touristic regions(Francis, Fidato, & Humphreys, 2003). Corresponding to the research of BBC News, independent research was conducted to measure the impact of low-cost services on real estate. The researcher stated that the low-cost services are adding fuel to the demand for property. The research quoted that 40% of the property prices are increased in the region of 16 kilometers of the airport(Diaconu, 2012).

The literature referred to spin-offs and the effects on the airport to receive the low-cost services and to create a new impact and concept on the regions. The tourism flow is increased that generate more opportunities for international connections and to create a new market in the community. The increase inlow-cost connections led to a high and more valuable asset to the community. It gives opportunities to the companies for the marketing incentives of development and tourism and international connections(BURGHOUWT, LEON, & WIT, 2015).

All these social impacts are the basis of the present research as the present study thoroughly considers the case studies. Three cases are considered as examples and to explore the benefits of low-cost airline services. The concern of the present thesis is to explore services provided in European airline service providers. Some of the notable low-cost carriers of Europe are listed as Lupton and Stansted, Gatwick, and London airports. The capacity is a constraint of airline services that can change the routes of services. The rapid growth of seats supplied to the customers and the number of flights in the low-cost services resulted in the high services on the basis of contracts(Akgüç, Beblavý, & Simonelli, 2018). The customers have not a list of required services. Due to low-cost services, the major carriers experience huge difference and reduction in capacity. The outcomes of low-cost services to the customers demonstrate the principle market and the development process. The incumbents of the smaller market are likely to reduce the capacity and the competition(Akgüç, Beblavý, & Simonelli, 2018; Mandic, Teklić, & Petrić, 2017). 

The low-cost services provide tremendous opportunities for the customers. It can be used to maintain 25% of the growth rate on an annual basis. The result possesses one-third of the outcomes in the intra-Europe market. In addition to the previous market levels, low-cost services are emerging. Despite the higher success of low-cost carriers, there is a lack of sufficient evidence that can conclude the cannibalization of network and the majority of services are provided to the new customers(Mandic, Teklić, & Petrić, 2017). These customers are newly generated traffic that goes through network carriers. On some of the thicker routes of Europe, the traffic is highly diverted to the other networks. The analysis shows that there is a non-frill airline service that enters the big haul markets and a significant extent of services. The characteristics of the market are higher that are strongly against the business model of European companies(Lu & Pagliari, 2004).  

There are a number of uncertainties that remain overwhelming on the low-cost model and simplicity is the key to success in the low-cost carriers. The current expansion is high for some low-cost carriers such as EasyJetand Ryanair. The major carriers sometimes face more issues and respond to them effectively(Akgüç, Beblavý, & Simonelli, 2018). Meanwhile, the major airline services and carriers are efficient in responding to the new need for environmental analysis, the low-cost service segments are more available to the new entrants. The customers are highly benefited from the different rising in the low-cost service sector and the competition is becoming more due to diversity of fares and frequencies. The feed of major carriers is squeezed under different routes and it is subjected to the point to point competition(Vidović, Steiner, & Babić, 2006). 

The consumers are benefited from the increase of low-cost services for competition, destination, diversity of fares, diversity of services, and frequencies of services. The major impact is analyzed as 50% of the traffic is carried out low-cost airlines. Different issues are considered in the previous analysis that deals with the indication of tremendous traffic growth, capital expenditure, and infrastructure investment. The low-cost carriers offer services at different rates and ensure to maintain the competitive level of services. The companies are defining high allocation and capacity for the maintenance of services (Akgüç, Beblavý, & Simonelli, 2018; Mandic, Teklić, & Petrić, 2017). 

Research objectives of Social impact of low-cost airlines in the European airline industry

The main objectives of the present work refer to,

1.      Identification of the factors that induce impact on the emergence of low-cost airline services in Europe.

2.      Underlying all the factors and major types of low-cost airline services in Europe.

3.      Identification of different methods that can be implemented through airline services to keep low-cost services as trending and hot services.

4.      Determine the factors inducing impact on the enhanced success of low-cost airline services in Europe.

5.      Identify and evaluate the social impact of the airline industry.

References of Social impact of low-cost airlines in the European airline industry

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