1. Which of Porter’s strategies are the budget airlines following? From an operations perspective, how can budget airlines differentiate their offerings from those of their competitors? The budget airline sector is made up of a number of competitors including easyJet and Ryanair, to name but two. These airlines drive down costs and generate revenue by focusing upon operational aspects of the business. In terms of reducing costs, the airlines provide Internet booking, the use of regional hub airports that can generate faster turnaround times for the planes and limited customer call centre facilities; they also have lower numbers of ground handling staff. The airlines generate revenue through the customer purchase of on-board meals and drinks, advertisements both on the outside and inside of planes (e.g. on the back of headrests), charges for additional luggage and the selling of hire car agreements to customers.