FlyerTalk Forums - View Single Post - Airlines - Brands or Commodity?
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Old Aug 12, 2005 | 10:34 am
  #5  
MetalDoggy
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Join Date: May 2005
Location: Edinburgh
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Most of the "top airlines" trade on the stock market at little over book value which is typical of a commoditised business. They are typically unable to generate returns higher than their cost of capital over a cycle.

However it is clear that they have some "brand value" as passengers like me will pay a premium to fly on the "top airlines" over either American or LCCs.

So I'm sitting on the fence!
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