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Would you invest in a low cost long haul airlines?

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Old Jan 4, 2004, 7:07 pm
  #16  
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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?
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Old Jan 5, 2004, 7:33 pm
  #17  
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<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).]
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I'm also going to comment on that. I don't fly SW very often, but I went from SFO-SAN a few months ago and I have to comment that most of the people on the plane were there on business trips. Most were well dressed and well mannered.

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.
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Old Jan 6, 2004, 6:26 am
  #18  
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I would not invest in an airline. Two of the largest costs they have very little control over.

Fuel and labor
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Old Jan 6, 2004, 6:27 pm
  #19  
 
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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.

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Old Jan 8, 2004, 1:14 pm
  #20  
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No, I would not invest in an int'l LCC.
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Old Jan 8, 2004, 1:21 pm
  #21  
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No way would I invest in an airline. There are too many factors outside of the industry's control which would affect their profitability.
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Old Jan 8, 2004, 4:48 pm
  #22  
 
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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.

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Old Jan 8, 2004, 8:14 pm
  #23  
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<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>
I understand what you're trying to say. On the other hand, however, had you invested in AA last March, you would be showing a 9 month--1,000% return on your money.
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Old Jan 8, 2004, 8:15 pm
  #24  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by cabinpressure:
Branson? The closest WN city is STL, about 250 miles away.

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And I'm willing to bet that there are plenty of charter buses to run the 'necks that last 250 miles to Valhalla.
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