View Full Version : Discount/No Frills carriers vs. Traditional airlines


jerseyfinn
Jul 1, 04, 8:01 pm
Today's Wall Street Journal has a front page article focusing on Ryan Air which is very interesting. Ryan is one of Europe's leading discount airlines and has posted double digit margins for 7 years, but posts its first quarterly loss in 13 years as even the discounter market tightens up.

The article goes on to look at how Ryan operates from a cost-centric basis. There are absolutely no ticket refunds of any kind on Ryan, even for a canceled flight. "What part of ' no refund' don't you understand?" the chief CEO is quoted as saying. Likewise Ryan charges very high excess baggage fees " . . . stop bringing so much old rubbish with you" the CEO says ( sounds like fights my wife and I have when we travel). New planes lack window shades ( which delay the staff who must prepare for takeoff ) and the new seats do not recline at all to cut down mechanical parts and repair/maintainance.

It gets me thinking about what I really want in an airline. Now obviously one wants inexpensive tickets and some degree of service. But I'm not so sure that I want to fly in a seat I can't recline or have a window that I can't keep the sun out of my eyes. Then again, dangle a really cheap airfare in front of me, and I might ponder it.

I think that my point is that there is no one way or one single business model to define what constitutes a "perfect" airline. Certainly cost management is a huge factor in pricing and there is indeed a point at which one can give up some service for real savings. But I'm not so sure that I'd want to book a flight on an airline which cancels a flight and offers me nothing in return.

I guess that there's something to be said for reliability and convention. US might have some warts on it, but for me, I'm glad I fly US and receive at least some definitive level of service which meets my expectations if not always my pocketbook. I'm a little more thankful for US and the conventional carriers after reading this article.

Barry

sassamanlaw
Jul 2, 04, 5:53 am
I guess that there's something to be said for reliability and convention. US might have some warts on it, but for me, I'm glad I fly US and receive at least some definitive level of service which meets my expectations if not always my pocketbook. I'm a little more thankful for US and the conventional carriers after reading this article.

Barry

Well said. While I understand why LCC have their niche in the market, I can't imagine how a VFF could put up with the cattle call mentality.

CPRich
Jul 2, 04, 10:26 am
So let's consider my recent flight on US.

I show up at 4:45 for a 6am flight and see a line of 25 people at the US check-in. No bags, so I walk up to the kiosks - "Out of Order", "Out of Order", "Out of Order". I get back in line and wait, wait, wait. The agent shouts at everyone "Have your ID ready when you get here - I'm the only one working today". Nice - 2 RJ flights to start the day and they can't even handle that.

I am luckier than those who showed up "only" an hour ahead of time and get to the gate 15 minutes before departure and they are just getting ready for boarding. "Plane's been here all night, delays will ripple through the entire day, but let's just wait till the last minute for fun". Finally the announcement - "Now boarding all rows". So much for status/pre-boarding. It's an RJ so no real service, no need to fight the crowds, I wait until the end. As I'm walking up, the agent closes the door and says "I'll be right back". Five minutes later, after chatting with a co-worker at the desk, he realizes I and a few others are still there.

We hurry down to the plane and are greeted with "Oh, hi. I've told everyone they can move around the cabin, so just take whatever is available." So much for reserved seating, my extra room in the exit row, etc. I get to spend the flight with my knees jammed into a seat back.

FA is kind enought to tap me on the shoulder to ask me if I want a drink. Ummm, no I'd rather sleep, which is exactly what I was doing before you woke me up.

Get to the gate, wait 5-7 minutes on board after pulling up to the gate. Hear the FA yelling and no one moving. As I finally get out, the FA shouts "don't you talk to me like that". Wondering whether she thought I said something, I turn to see a ramp worker yelling an pointing fingers at her in return.

The difference between US and LCC's? Understaffed, no FF perks, cattle call boarding, poor customer service - check, check, check, check. Oh, here;s the difference - I paid $979.50 for the 1hr 10min round trip flight.

US, it's hard to cut costs to long-term profitability. Beat up the pilots, mechanics, FA's, all you like. You need revenue. For revenue, you need to attract and retain passengers. Like me. As a 7x CP, especially like me. With soon-to-increase competition at PIT, especially like me. You're not.

Sorry I can't make RoachFEST. I'd love to discuss this case study with the execs, and why I'm periodically taking connections on other airlines to save money over US. I don't think they get it.