The Hidden Costs Of Budget Airlines

Are budget airlines always the cheapest way to fly?

When it comes to flying, how cheap is cheap these days? With some fares advertised as low as 1p, it's easy to see why you'd want to take a break and head off to sunnier pastures.

But whilst self professed `no-frills' airlines may be your first stop when looking for a bargain, are they always the cheapest? I decided to investigate.

With the pound at a 26 year high against the dollar, the US is an attractive holiday prospect at the moment. And for those wishing to go to the Big Apple on a budget, you'll be happy to hear that low cost travel is no longer restricted to Europe.

FlyZoom is a low-fare airline which operates several transatlantic flights from the UK. But how would it compare to an aviation heavyweight such as Virgin Atlantic?

As a hopeless romantic - on a budget, I decided to see how much it would cost for a return trip to New York (JFK) from London that would coincide with Valentine's Day. Searching for prices between 10^th - 17^th February 2008, FlyZoom quoted a total price of £310.75, compared to Virgin's £339.50 (all prices were correct at noon on Tuesday).

On face value alone the figures speak for themselves. FlyZoom is £28.75 cheaper than Virgin.

Or is it?

FlyZoom has a baggage allowance of 20kg per person, compared to Virgin's generous 46kg allowance (2 x 23kg). Now, if you're anything like me, then by the time you've packed your essentials, 20kg doesn't leave much room to shop -- especially when you're going to New York. With an excess charge of £6.00 per kg, luggage weighing 30 kg would instantly add £60 to your bill.

In addition, ease and comfort comes at a price with FlyZoom. Headsets cost £2.50 per person, and a Comfort Pack (containing a blanket, eye mask and neck pillow) will set you back £3.00. Fancy a tipple? That'll be £4.00 please. While FlyZoom does provide a complimentary meal and soft drinks for the flight, alcoholic beverages are extra. All these services are included with Virgin.

FlyZoom also seats customers on a first come, first served basis, unless (you guessed it) you pay more for the privilege. An extra £10 each way lets you pick your seat on the flight, again a service Virgin includes at no additional cost.

Bearing this in mind, if you did require all the creature comforts then the £310.75 you initially forked out could end up turning into something more like £400. Ouch.

I realise that the whole purpose of budget airlines is that they provide a lower standard of service in return for cheaper fares. But taking into account FlyZoom's advertised £149 fare on the website, finding a flight under £200 proved almost impossible, with most quotes being around £250. The cheapest flight on Virgin I found was £272.80, not a bad alternative if you're flexible about when you can fly.

How the airlines compare

So we've looked at the States, what about Europe? When it comes to flying to the continent, no-frills giants such as Ryanair and easyJet have dominated the low-cost market for several years. Flying to Barcelona between 14^th-17^th February 2008, Ryanair will take you there and back for £35.77, easyJet £70.98 and British Airways £97.30.

But here's where it gets complicated. Ryanair may look by far the cheapest on paper, but the airline also has a minefield of extra charges.

Firstly, just seeing someone at check in will set you back an extra £4.00, regardless of whether you have any baggage. Checking something in? Then be ready to part with an extra £10 (£20 if you realise you have to check something in at the airport), and an eye watering £30 if you have two bags to check in.

In addition, if your luggage weighs over 15kg, Ryanair charges £5.50 per kg of extra baggage. For someone carrying the British Airways allowance of 23kg, that's another £44 on top of the ticket price.

It's also worth pointing out that while British Airways flies into Barcelona's main airport, Ryanair flies to Girona airport which is approximately 90 kms outside Barcelona. This is true of many destinations, and is worth bearing in mind when you think you've grabbed a bargain but end up in the middle of nowhere because of it.

So, taking all this into account, checking in one bag at the airport weighing 23kgs will take your ticket price up to £93. Not so cheap after all. But in all fairness to Ryanair, if you have no bags except hand luggage, are able to check-in online and have access to a printer to print off your boarding pass, there are no extra charges to pay, and Ryanair will even let you board the plane first.

For Fools outside the South East, it's worth pointing out that the budget airlines often have a wider choice of destinations away from the capital. The trick is to know where to look -- and not to be seduced by the word `budget'. Try looking at price comparison sites such as lastminute.com and expedia.co.uk which will search for the cheapest options for when you want to fly. Lastminute even searches the no-frills airlines, and if your dates are flexible, will show available prices within a few days either side of your specified dates.

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Szu Ping Chan conducted the research for this article on Tuesday, November 12^th. Fares may have changed since then.