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Thread: Why legacy carriers set up a carrier within a carrier via a low cost offering?
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Old Jan 22, 2015 | 5:45 am
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jrl767
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Originally Posted by florin
... It's elementary, Watson. For leisure routes, where you expect most or all pax to be leisure, a LCC subsidiary helps an airline stay competitive while still offering a full service via the legacy carrier. ... For other short and medium haul flights (especially to/from holiday destinations, but it's not limited to that because you have leisure pax flying between major cities as well), you can still compete with LCCs via the LCC subsidiary, without having to eliminate virtually everything from your legacy flights in order to reduce costs and compete on price.
yeah, look at all the "LCC-airline-within-major-airline" success stories for U.S. carriers:
  • Continental West
  • Delta Express, Delta Shuttle, Song
  • United Express, Shuttle By United, Ted

the average life span was around three years

it's ironic how the "less-pitch-means-more-seats" and "pay-for-services" business models that characterized the unsuccessful LCC subsidiaries have become features of most mainline operators
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