FlyerTalk Forums - View Single Post - Why legacy carriers set up a carrier within a carrier via a low cost offering?

Jan 22, 2015 | 8:09 am

#10

florin

Join Date: Nov 2006

Location: MEL

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Quote:

Originally Posted by jrl767

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

I think these are different things. Delta Express, United Express, etc are regional carriers (regional subsidiaries), which are different from LCC subsidiaries.

Let's take KLM as an example:

Transavia is an LCC subsidiary (like LH's GermanWings), what the OP calls LCC
CityHopper is a regional subsidiary (like Delta Express), what the OP calls CWC

I only spoke about LCCs, not CWCs, which are a different story (though still mainly about keeping labor costs low).

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