Further to the reports (http://www.ynet.co.il/articles/0,7340,L-4205748,00.html) of losses by ELAL, and the new open skies agreement with Europe, meaning much more open competition (I assume including plenty of low cost airline), we can conclude that if ELAL does not take fast action to become a top class airline (Business & first seats - matmid program & plenty of more things to change), there whole existence might be at risk.
Hopefully El AL will be forced to get their act together now.
But we know they wont.
I suspect with really high gas prices so far this year, like other airlines, they will hit a loss despite (lame) attempts to generate new revenue with increase bag costs and bikes etc.
may_east
Mar 23, 12, 2:14 am
Further to the reports (http://www.ynet.co.il/articles/0,7340,L-4205748,00.html) of losses by ELAL, and the new open skies agreement with Europe, meaning much more open competition (I assume including plenty of low cost airline), we can conclude that if ELAL does not take fast action to become a top class airline (Business & first seats - matmid program & plenty of more things to change), there whole existence might be at risk.
i think you are way way off.
people dont care about biz/first or loyality.
they want to travel CHEAP !
This is what the low cost airlines realised long time ago, and this is why they remain profitable despite the fuel costs ...
if people are willing to travel with easy jet to london in seats that you cannot move the back even 1 inch, you can conclude that price is the top factor.
you are talking from a position of a business traveller that expects more from a flight, and willing to pay for it. most people are not like you.
joshwex90
Mar 23, 12, 4:15 am
i think you are way way off.
people dont care about biz/first or loyality.
they want to travel CHEAP !
This is what the low cost airlines realised long time ago, and this is why they remain profitable despite the fuel costs ...
if people are willing to travel with easy jet to london in seats that you cannot move the back even 1 inch, you can conclude that price is the top factor.
you are talking from a position of a business traveller that expects more from a flight, and willing to pay for it. most people are not like you.
But the majority of airlines' revenues (full-service airlines, not LCCs,) comes from those top business travelers. Take UA, for example. 30% of all revenue comes from the top 0.88% spenders.
ELAL
Mar 24, 12, 3:14 pm
i think you are way way off.
people dont care about biz/first or loyality.
they want to travel CHEAP !
This is what the low cost airlines realised long time ago, and this is why they remain profitable despite the fuel costs ...
if people are willing to travel with easy jet to london in seats that you cannot move the back even 1 inch, you can conclude that price is the top factor.
you are talking from a position of a business traveller that expects more from a flight, and willing to pay for it. most people are not like you.
They are going to have a very hard time keeping the cheap traveller (like myself) once the market is full of low cost airlines. There only chance to survive is to be a premium airline which will still get them a certain part of the public, while if being a old run down airline, they will end up with the cheap travellers all on easy jet, and the premium passengers on BA/LH/CO and plenty more flying from TLV.
entropy
Mar 25, 12, 4:52 pm
premium passengers on BA/LH/CO and plenty more flying from TLV.
They already fly CO/BA/LH, which is part of why those airlines make bank flying to TLV while LY struggles.
Shimon
Mar 26, 12, 5:14 am
There is no reason why they can't do both. Make economy cheaper and premium more exclusive.
simba8
Mar 28, 12, 10:34 am
There is no reason why they can't do both. Make economy cheaper and premium more exclusive.
They cant do both.
I can fly AC, from YYZ, participate in a real points program and get my own AVOD, at sometimes equal or less money. They cant compete.They need to seriously overall alot of areas and win back customer loyalty.
joshwex90
Mar 28, 12, 10:43 am
They cant do both.
I can fly AC, from YYZ, participate in a real points program and get my own AVOD, at sometimes equal or less money. They cant compete.They need to seriously overall alot of areas and win back customer loyalty.
Agreed. They need completely new management who will overhaul the airline. Some airlines need to make changes to increase revenue or customer loyalty, etc. With LY, it's not just about change this or change that - there needs to be an overhaul, top-down and bottom-up. (One thing that pisses people off about LY is the fact that if you have no status, good luck getting help. They simply don't answer the phone, will call you back 2 days later, are brisk, give answers that are either not true, outdated, don't answer the question you're asking, or are just plain obnoxious with the way they answer, and then they hang up on you! Israelis may be willing to take that attitude, but not Americans, Brits, etc.)
They need new planes. They need new hard products in all classes (though Y is decent on 772, simply needs new and better IFE systems). They need a brand new Matmid program that's better for earning status, rewarding loyalty, booking award travel, earning with partners (other airlines, hotels, car rentals, credit cards, etc.). They need an intuitively built website, and theirs' isn't. As the main carrier of TLV, use it to your advantage. Come out with a single app for iPhone and Android (not the multiple apps that they have, yet they can't come out with any for Android), and start having mobile BPs in TLV. Add priority screening for high status pax and premium cabin pax.
Rant over!
HONcircle
Apr 2, 12, 8:50 am
Agreed. They need completely new management who will overhaul the airline. Some airlines need to make changes to increase revenue or customer loyalty, etc. With LY, it's not just about change this or change that - there needs to be an overhaul, top-down and bottom-up. (One thing that pisses people off about LY is the fact that if you have no status, good luck getting help. They simply don't answer the phone, will call you back 2 days later, are brisk, give answers that are either not true, outdated, don't answer the question you're asking, or are just plain obnoxious with the way they answer, and then they hang up on you! Israelis may be willing to take that attitude, but not Americans, Brits, etc.)
They need new planes. They need new hard products in all classes (though Y is decent on 772, simply needs new and better IFE systems). They need a brand new Matmid program that's better for earning status, rewarding loyalty, booking award travel, earning with partners (other airlines, hotels, car rentals, credit cards, etc.). They need an intuitively built website, and theirs' isn't. As the main carrier of TLV, use it to your advantage. Come out with a single app for iPhone and Android (not the multiple apps that they have, yet they can't come out with any for Android), and start having mobile BPs in TLV. Add priority screening for high status pax and premium cabin pax.
Rant over!
+1
When the ENTIRE Israeli economy will get a complete overhaul from scratch, LY will be part of that refurbishment too. But don't expect any of it to happen soon.