Originally Posted by
stut
I think it's a question of the market evolving and airlines finding their niche
therein. Speaking about Europe, as that's what I'm familiar with...
Originally Posted by
stut
So, the FSCs look on and think, hmm, how do I compete? Well, two things: match on price, or compete on product.
Matching on price is difficult. You will always have a higher cost base with larger hubs, more senior staff, transfer operations...
Offering transfer operations, at large hubs, is a part of full service. It costs, and gives the passengers value for money.
More senior staff? What is it good for? If they cost, wouldn´t a new start-up full service carrier, like Virgin, enjoy a cost advantage over legacies?
Originally Posted by
stut
But then, you're also handling lucrative intercontinental flights and premium cabins, so there is room for some slack.
In other words, cross-subsidize economy?
Then an airline might do better by flying intercontinental only, with no connecting flights to subsidize. Like Virgin, again.
Originally Posted by
stut
And, of course, a whole spectrum between the two.
But then, some LCCs came along and saw another niche: what if we launched a product aimed at the quality end of the market, but with the lower cost base of an LCC? Witness JetBlue, Air Berlin and more!
What about Spirit? It offers normal mainline two-class seating... what makes it a LCC?