Originally Posted by whlinder
mid,
Please explain how FlyI has a shot at making it. I'd really like to know. I don't want to see them fail, I am pleased they have brought cheaper travel to IAD, they have nice people, etc. However, an airline cannot sell (on average) tickets that do not even cover the cost of transporting the seat indefinitely. The 4 bankrupt carriers don't do that. So please tell me how FlyI can make it.
Airlines do not exist to provide transportation as cheap as possible. They exist to make money for their shareholders. Only Southwest has been successful doing that for an extended period of time and through all economic cycles. FlyI's fares are so cheap that they have no chance at making money at today's fuel prices and can't raise their fares because then even fewer people will fly them. Remember, FlyI would have lost money in Q2 even if they hadn't paid a dime for jet fuel. Do you really think the 4 major carriers operating under Chapter 11 protection would be losing money or be bankrupt if they didn't have to pay for fuel?
Fuel is speeding up FlyI's demise but it is not the cause of it. Perhaps if fuel was cheaper FlyI would be able to turn the airline around with more time.
United:
199.20 USD per person
Leg Flight info Date Depart Arrive Stops
1 United Airlines 804 Sep 15 10:00 pm IAD 11:32 pm BOS Non-stop
Independence Air:
Reg Fare $189.00 USD
Thu, 15 Sep 05
Flight 572
9:15 pm Depart Washington-Dulles, VA (IAD)
10:49 pm Arrive Boston, MA (BOS)
Just a sampling.
You guys always seem to believe that because they are selling some fares at rock bottom prices that means that they do that continuously. In fact, they maintain a price advantage right up until the day of travel against United but they narrow the spread a great deal. They don't sell every last seat at a rock-bottom price.
Also, DH has policies and prices that appeal to last minute travellers as well as leisure travellers. The thing is: a change fee on DH is something like $35. On United, it's about $100. If you travel for business like I do, then which one would you choose if there was even the slightest chance that you might have to change your flight?
A LOT of travellers on DH are finding out that they are more convenient from IAD for last minute travel and they are more flexible when it's necessary to change plans. I'm one of them. A BIG reason why I'm choosing them for travel to BOS is that they have a MUCH lower change penalty. I also get to leave from the B-gates at IAD (which I can walk to) than the G or C-gates. Another plus.