Creating a New Airline
Mar 9, 2005 | 1:18 pm
#4
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For starters, uncertaintraveler, you may want to refer to the very first milepost I have ever posted in the very first thread I have ever started on FlyerTalk:
You are the CEO of _____ Airlines.
You are the CEO of _____ Airlines.
Originally Posted by Canarsie
Here is your chance! You own the airline. What would you do?
Mar 9, 2005 | 1:18 pm
#5
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Mar 9, 2005 | 7:45 pm
#7
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That sort of advice is hard to find. They are using it themselves (does "David Neeleman" sound familiar? 
).
But we could always discuss it here at no charge. Couldn't hurt, right?
Exactly how good would the service be? Luxury (e.g., all First Class)? Or the basic coach product but with the amenities of 1970's air travel? (legroom, meals, free drinks, etc.)
).But we could always discuss it here at no charge. Couldn't hurt, right?
Exactly how good would the service be? Luxury (e.g., all First Class)? Or the basic coach product but with the amenities of 1970's air travel? (legroom, meals, free drinks, etc.)
Mar 10, 2005 | 10:42 am
#9
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Originally Posted by uncertaintraveler
Anyone want to tell me where my plan has holes or problems?
"Signature Service" still exists, but I don't believe it is what it was before the LCCs came in (never flown them, myself).
Mar 10, 2005 | 10:50 am
#10
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Originally Posted by SEA_Tigger
Off the top of my head, I can think of Midwest Airlines. They had a similar in-flight experience, "Signature Service", and while they did okay for a bit, once the LCCs entered those markets and knocked off that $50 extra you hope to charge, many of their passengers deserted them and they had to launch their "Saver Service" and add in the seats and take out the amenities.
"Signature Service" still exists, but I don't believe it is what it was before the LCCs came in (never flown them, myself).
"Signature Service" still exists, but I don't believe it is what it was before the LCCs came in (never flown them, myself).
Every seat was a leather seat one would find in a domestic First Class cabin. There were no middle seats. I used to have a hot meal of filet mignon with two side dishes and a salad. The linens were cloth and the cutlery was silverware. Wine was served, although I do not drink alcoholic beverages. Hot, soft chocolate-chip cookies were served as a dessert. The service and amenities were impeccable. Best of all, the price of the airfare was comparable to the airfare on other airlines.
Ah, how I miss those days...
Mar 10, 2005 | 12:10 pm
#11
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Originally Posted by uncertaintraveler
JS, my business model (condensed and generically speaking) focuses on medium to long-haul domestic flights, point to point, connecting the top 10 to 15 markets in term of revenue, passengers, and need. No short-haul flights and nothing to small-market cities. Thus, no service to those cities that aren't capitals or that have a population less than 400K to 500K.
The product itself would involve all premium coach (but no middle seats!), with IFE and leather seats. Seat width would be generous and seat pitch would allow for a 6 foot tall person to feel comfortable. Free drinks (but probably no alcohol) and free food (not snack food, but real food that fills you up). With no premium levels such as first/business class, elite status grants you lounge access, free flights, and/or a seat in the otherwise-blocked off exit and first several rows of the plane. (The idea being that it should be easy as possible for frequent travelers to board and deplane.) The fare system would be very simple, with at most 4 price levels (all based on time of purchase) and all tickets refundable. Elite status would be based on a combination of the fare level purchased and/or number of flight segments flown.
I think the price point is anywhere from $10 to $50 more than a competitor's ticket price, but I think the extra service and amenities would justify the extra cost.
Anyone want to tell me where my plan has holes or problems?
The product itself would involve all premium coach (but no middle seats!), with IFE and leather seats. Seat width would be generous and seat pitch would allow for a 6 foot tall person to feel comfortable. Free drinks (but probably no alcohol) and free food (not snack food, but real food that fills you up). With no premium levels such as first/business class, elite status grants you lounge access, free flights, and/or a seat in the otherwise-blocked off exit and first several rows of the plane. (The idea being that it should be easy as possible for frequent travelers to board and deplane.) The fare system would be very simple, with at most 4 price levels (all based on time of purchase) and all tickets refundable. Elite status would be based on a combination of the fare level purchased and/or number of flight segments flown.
I think the price point is anywhere from $10 to $50 more than a competitor's ticket price, but I think the extra service and amenities would justify the extra cost.
Anyone want to tell me where my plan has holes or problems?
Having four published fares based on time of purchase is fine. The quoted fare needs to also be based on seat availability, but that doesn't really add any complexity as far as the user is concerned. For example, if you go to southwest.com and start a reservation, you see all the published fares, and the ones available to purchase are those that meet both the advance purchase and seat availability requirement.
Flying point-to-point is a good idea and may eliminate some of the Midwest Express problem, where a legacy carrier cuts the fares on all the flights out of your hub. The other carrier touts a "Kansas City sale" while putting the screws to you.
Making all tickets refundable is an interesting idea. It could result in revenue leakage (people willing to pay a little more for a refundable ticket, as on Southwest, need not do so if all tickets are refundable).
The biggest problem will be the inevitable competitive response from the legacy carriers who offer $39 fares and triple miles and things like that.
You might stand a better chance of success flying smaller city pairs in order to stay "under the radar" of the major airlines. Take Hooter's Air for example. They have a MYR hub and fly to places like LCK and GYY. They pretty much have the market to themselves. They also fly to BWI, EWR and ATL, but (aside from ATL) when you have the only non-stop service, you do a lot better.
If you try to start off flying NYC-LAX, you will need billions of start-up capital ala JetBlue (but a lot, lot, lot more now that JetBlue is successfully flying JFK-LGB).
Besides, if you do buy a regional jet, you won't need to fly huge city pairs. Fly something like ALB-BTV, JAX-CRW or CAE-DEN.
Mar 10, 2005 | 1:18 pm
#13
Join Date: May 2001
Location: IAD
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I don't know how you'd define 'toyish' but www.airlinesimulation.com is the most advanced one I've seen for airline management sim software.
Mar 10, 2005 | 1:28 pm
#15
Join Date: May 2001
Location: IAD
Posts: 6,453
Originally Posted by uncertaintraveler
JS, my business model (condensed and generically speaking) focuses on medium to long-haul domestic flights, point to point, connecting the top 10 to 15 markets in term of revenue, passengers, and need. No short-haul flights and nothing to small-market cities. Thus, no service to those cities that aren't capitals or that have a population less than 400K to 500K.
The product itself would involve all premium coach (but no middle seats!), with IFE and leather seats. Seat width would be generous and seat pitch would allow for a 6 foot tall person to feel comfortable. Free drinks (but probably no alcohol) and free food (not snack food, but real food that fills you up). With no premium levels such as first/business class, elite status grants you lounge access, free flights, and/or a seat in the otherwise-blocked off exit and first several rows of the plane. (The idea being that it should be easy as possible for frequent travelers to board and deplane.) The fare system would be very simple, with at most 4 price levels (all based on time of purchase) and all tickets refundable. Elite status would be based on a combination of the fare level purchased and/or number of flight segments flown.
I think the price point is anywhere from $10 to $50 more than a competitor's ticket price, but I think the extra service and amenities would justify the extra cost.
Anyone want to tell me where my plan has holes or problems?
The product itself would involve all premium coach (but no middle seats!), with IFE and leather seats. Seat width would be generous and seat pitch would allow for a 6 foot tall person to feel comfortable. Free drinks (but probably no alcohol) and free food (not snack food, but real food that fills you up). With no premium levels such as first/business class, elite status grants you lounge access, free flights, and/or a seat in the otherwise-blocked off exit and first several rows of the plane. (The idea being that it should be easy as possible for frequent travelers to board and deplane.) The fare system would be very simple, with at most 4 price levels (all based on time of purchase) and all tickets refundable. Elite status would be based on a combination of the fare level purchased and/or number of flight segments flown.
I think the price point is anywhere from $10 to $50 more than a competitor's ticket price, but I think the extra service and amenities would justify the extra cost.
Anyone want to tell me where my plan has holes or problems?
As for your price points being $10-$50 above your competitor's ticket price, how will you pick which ticket prices you will be $10-$50 higher than them? You are proposing only 4 or so fares, yet your competitors will have anywhere from 8-30 fares. The simplest fare structure I've seen in the U.S. market is Independence Air, and they have about 6 fares in most markets. They are also losing their shirts. If you have 4 fares and your competitors have 20, which of their fares will you match with a $10-$50 'premium'?
Last edited by whlinder; Mar 10, 2005 at 7:15 pm Reason: url error