Originally Posted by uncertaintraveler
JS, my business model (condensed and generically speaking) focuses on medium to long-haul domestic flights, point to point, connecting the top 10 to 15 markets in term of revenue, passengers, and need. No short-haul flights and nothing to small-market cities. Thus, no service to those cities that aren't capitals or that have a population less than 400K to 500K.
The product itself would involve all premium coach (but no middle seats!), with IFE and leather seats. Seat width would be generous and seat pitch would allow for a 6 foot tall person to feel comfortable. Free drinks (but probably no alcohol) and free food (not snack food, but real food that fills you up). With no premium levels such as first/business class, elite status grants you lounge access, free flights, and/or a seat in the otherwise-blocked off exit and first several rows of the plane. (The idea being that it should be easy as possible for frequent travelers to board and deplane.) The fare system would be very simple, with at most 4 price levels (all based on time of purchase) and all tickets refundable. Elite status would be based on a combination of the fare level purchased and/or number of flight segments flown.
I think the price point is anywhere from $10 to $50 more than a competitor's ticket price, but I think the extra service and amenities would justify the extra cost.
Anyone want to tell me where my plan has holes or problems?
Your airline sounds a lot like the business plan for Primaris (
www.primarisairlines.com), with a few differences. They are planning international flights, and don't mention free drinks, but do claim to offer quality food on demand.
As for your price points being $10-$50 above your competitor's ticket price, how will you pick which ticket prices you will be $10-$50 higher than them? You are proposing only 4 or so fares, yet your competitors will have anywhere from 8-30 fares. The simplest fare structure I've seen in the U.S. market is Independence Air, and they have about 6 fares in most markets. They are also losing their shirts. If you have 4 fares and your competitors have 20, which of their fares will you match with a $10-$50 'premium'?