Originally Posted by
Concerto
I think it's dreadful that they've started destroying their service concept but the fares I've been booking out of GVA the last couple of years are unsustainable.
The thing is: These fares are sustainable for (highly profitable) easyJet.
LX has tried and failed to extract a yield premium over easyJet ex GVA: They could not get enough volume business to fill their aircraft at a yield higher than what easyJet set the market to.
That leaves 2 options:
- Stop competing and halt flights
- Try to cut costs as much as possible and boost ancillary revenues to become competitive
LX has gone for option 2. And as someone who has seen such business cases before, I can tell you that typically, it's all upside: Customers grumble, pay the same base fare, are no more or less loyal, and now you make an average of CHFx of incremental margin from overpriced BoB.
I don't like it, but I get it. And I expect it in ZRH before the year is out.