FlyerTalk Forums - View Single Post - LHs strategy: discussion thread for customers, investors, consultants & armchair CEOs
Old Aug 14, 2014, 10:52 am
  #1508  
IAN-UK
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Originally Posted by gum
I am convinced that the introduction of Premium Economy will have significant impact on the profit & loss statement. Especially on all routes with the A 380 where there is an *assumed* overcapacity of Y seats.

On that plane 84 seats of Y are replaced by 52 seats of Y+ thus requiring an average Y+ fare (with an assumed similiar load factor) which is approx. 61 % than the avarage Y fare with the same fare restrictions.

The already bookable fares for Y+ suggest that Lufty will reach this goal. ^

There is an additional effect: Taking out some capacity of standard Y will stop the immense pressure on special fares just to fill the large birds.
You indulge in the rosy view of a convert. A less subjective analysis has to consider the very real risk of cost-conscious passengers normally in business-class finding the Y+ product attractive enough for them to desert the J-class cabin. It won't take the loss of many of these to wipe out gains from Y-migration.

Of course, there might well be a queue waiting to take up any spare seats in business-class: there again ......

Last edited by IAN-UK; Aug 14, 2014 at 3:35 pm
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