Originally Posted by
yulred
Yeah, I was wrong. As one often is when passenger traffic exceeds growth in capacity. Something about an 8.5% increase in pax traffic on a 7.8% increase in capacity.
Though we're often on opposite sides, I respect your POV. But I'm confused ... You think market is still undersupplied or not? WS and TS are each curbing capacity increases YET traffic continues to lag growth.
Originally Posted by
yulred
My bet (based on no tangible evidence whatsoever) is that this will serve as the basis for a Rouge flight to FRA.
I disagree. You'll lose the o/d power of London, and most of your cost savings via Rouge will be eaten feeding the existing traffic via FRA to many destinations already served from your global hub.
Originally Posted by
PLeblond
Not sure I understand/agree with the Rouge idea. I'm actually surprised LHR was a viable destination since its mostly an O/D route, only connecting to other *A hubs.
It's viable due to the relatively strong O/D nature of the route. O/D traffic is almost always more profitable than connecting.
Originally Posted by
PLeblond
FRA, I believe, is a higher yield route and I don't see Rouge on such a route, especially since most lower yield traffic will gladly take the 40 minute flight to YYC to save a few bucks.
FRA is not higher yielding.