Would you invest in a low cost long haul airlines?
#16
FlyerTalk Evangelist
Join Date: Sep 1999
Location: source of weird and eccentric ideas
Posts: 38,681
Laker Airways did this first. Sir Freddie Laker advised Branson and told him to get Heathrow slots at any price, and he did.
I could see how a longhaul LCC could make it out of Austrlaia. Travel from there is rather expensive and provides a price umbrella.
But can a LCC compete on longhaul routes with only coach? Perhaps if it is "enhanced coach", but I think it needs a business class, and where is the cost advantage over the full service airlines then?
I could see how a longhaul LCC could make it out of Austrlaia. Travel from there is rather expensive and provides a price umbrella.
But can a LCC compete on longhaul routes with only coach? Perhaps if it is "enhanced coach", but I think it needs a business class, and where is the cost advantage over the full service airlines then?
#17
FlyerTalk Evangelist
Join Date: Apr 2003
Location: PHL (and sometimes BKK)
Programs: aa/ua gold; mar titanium. SPG till I die.
Posts: 15,648
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Factotum:
Count me in with the horribly elitist bunch. A few months ago I took a Southwest flight because, quite simply, none of my usual airlines covered the route satisfactorily. Consistent with the few other Southwest flights I've taken, the clientele was... distinctly different. Now, don't get me wrong - plenty of accomplished travelers fly, even prefer, Southwest - but judging from the conversations I overheard most of the passengers were just average folks looking for cheap seats for their once-a-year flight to Florida, or Vegas, or Scottsdale, Arizona. Note that since the passport-to-citizen ratio in the USA is well below 50%, average folks do not, by definition, fly transoceanic routes.
[This message has been edited by Factotum (edited Jan 04, 2004).]</font>
Count me in with the horribly elitist bunch. A few months ago I took a Southwest flight because, quite simply, none of my usual airlines covered the route satisfactorily. Consistent with the few other Southwest flights I've taken, the clientele was... distinctly different. Now, don't get me wrong - plenty of accomplished travelers fly, even prefer, Southwest - but judging from the conversations I overheard most of the passengers were just average folks looking for cheap seats for their once-a-year flight to Florida, or Vegas, or Scottsdale, Arizona. Note that since the passport-to-citizen ratio in the USA is well below 50%, average folks do not, by definition, fly transoceanic routes.
[This message has been edited by Factotum (edited Jan 04, 2004).]</font>
Now for flights to cities like Las Vegas or Orlando.. that's anyone's guess.
The 'myth' with the passport thing is that most places americans may go on vacation, like Mexico, Canada, or most Caribbean islands don't require US citizens to have passports, just birth certificates and IDs, negating the real need for one. Also, places like South Florida and Hawaii are very popular for people of all wealth classes, and they're states.
#18
Moderator: CommunityBuzz!, OMNI, OMNI/PR, and OMNI/Games & FlyerTalk Evangelist
Join Date: Nov 2000
Location: ORD (MDW stinks)
Programs: UAMM, AAMM & ExPlat, Marriott lifetime Plat, IHG Plat, Hilton Diamond
Posts: 23,506
I would not invest in an airline. Two of the largest costs they have very little control over.
Fuel and labor
Fuel and labor
#19
Join Date: Nov 2003
Location: Ann Arbor, MI
Programs: Delta
Posts: 852
Branson? The closest WN city is STL, about 250 miles away.
Key Tours offered DTW-DUB charter flights a few years ago. My parents took one, in the early fall, for $400 RT all-in. Flight was about 1/3 full -- they each laid out on their own middle row and slept the whole way. Needless to say, the charters weren't offered the next year.
Hard to compete with BA's $100 each-way LHR-from-anywhere-in-the-U.S. sale fares.
Key Tours offered DTW-DUB charter flights a few years ago. My parents took one, in the early fall, for $400 RT all-in. Flight was about 1/3 full -- they each laid out on their own middle row and slept the whole way. Needless to say, the charters weren't offered the next year.
Hard to compete with BA's $100 each-way LHR-from-anywhere-in-the-U.S. sale fares.
#22
Join Date: Feb 1999
Location: Denver CO
Posts: 3,682
Ha Ha Ha Ha-that's a good one! Invest in an airline. HA HA HA! I'm dyin' here-somebody save me.
You mean with money? Real money? HA HA HA!
You mean a business with no pricing power? Unions? Customers going to the competition to save $10 on a $900 sale. To give away $200 in free product for someone who buys a $180 ticket. Hey-any bridges for sale this week?
HA HA HA! You guys are cute with the "what if" stuff. What if I was Derek Jeter.....
Yeah, I'll invest in an airline. I'll reinvest my winnings from the Masters this spring, right after I beat Tiger by 2 strokes.
Ah, that's rich. Really rich.
You mean with money? Real money? HA HA HA!
You mean a business with no pricing power? Unions? Customers going to the competition to save $10 on a $900 sale. To give away $200 in free product for someone who buys a $180 ticket. Hey-any bridges for sale this week?
HA HA HA! You guys are cute with the "what if" stuff. What if I was Derek Jeter.....
Yeah, I'll invest in an airline. I'll reinvest my winnings from the Masters this spring, right after I beat Tiger by 2 strokes.
Ah, that's rich. Really rich.
#23
Join Date: Dec 2002
Location: ORD AA EXP
Posts: 450
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Mountain Trader:
Yeah, I'll invest in an airline. I'll reinvest my winnings from the Masters this spring, right after I beat Tiger by 2 strokes.
Ah, that's rich. Really rich.
</font>
Yeah, I'll invest in an airline. I'll reinvest my winnings from the Masters this spring, right after I beat Tiger by 2 strokes.
Ah, that's rich. Really rich.
</font>
#24
Join Date: Dec 2002
Location: ORD AA EXP
Posts: 450
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by cabinpressure:
Branson? The closest WN city is STL, about 250 miles away.
</font>
Branson? The closest WN city is STL, about 250 miles away.
</font>