The aviation industry can be broadly classified into two categories, namely domestic and international carriers. As evident from the terminology, international carriers are those, which operate across various countries as well as offer cross-continental flights while domestic are the ones that operate within the same country. The major difference between these is the scope and extent of their operation. However, they also differ on the basis of a few more aspects like quality of services, in-flight amenities and business standards. Nevertheless, one fact that remains universal is that it is possible to get cheap air tickets domestic and international carriers.
Difference in Tax Levied
Services offered by provincial and cross-continental airlines differ by quite a margin due to a number of factors. It has been observed that a domestic carrier is always cheaper than a global one. This is for the simple reason that the former has to operate only in a single country, and thus has to pay less taxes. On the other hand, its global counterpart has to pay more simply to enter into another nation. When an airline seeks permission from the government of a country to operate within its borders, it has to pay a certain sum of money to conduct its business. For this factor, the operational charge of a cross-continental carrier is significantly more than a provincial one.
Catering to International Demands is Expensive
Another factor that helps provincial airlines is that these do not have to maintain high business standards as compared to those operating to a number of countries. When a carrier is operating to several nations across various continents, the service standards have to be stupendous in order to satisfy the global customers, who have varying choices and demands. Also, while operating across continents, they have to provide passengers more comfort and entertainment options.
Long journeys also require stoppages at one or more airports, which increase the expenses further. On the other hand, when operating within a smaller radius, the demands and choices of passengers are almost similar. Most journeys are completed within a short timespan, thus requiring minimal facilities on-board and no stoppages. As a result, carriers offering their services within the same country have a uni-directional approach as far as customer satisfaction is concerned. This helps them to earn more profits with smaller efforts as compared to those of an international one.
Carriers that operate within a single nation need to follow the rules and regulations of that country, but those operating on a global scale have to follow international aviation standards. These factors, though seem to be minuscule, have an enormous effect on increasing the expenses of global carriers.