Tweet
http://business.timesonline.co.uk/to...cle4004371.ece
Most of the low cost airlines in Blighty/Euro-zone will DIE!!!!
Mike
Most of the low cost airlines in Blighty/Euro-zone will DIE!!!!
Mike
-
-
Re: Pay NOW Fly latter....Fuel companys DEMAND Payment on delivery!!!!
Mike: Why do you think it will be the low cost airlines that will die?Originally posted by Mega View Post
Here's my thoughts:
Seats on an airplane are a perishable commodity, much like greengrocer produce. Perishable because if it hasn't been sold by the "best before" date (e.g. a paid up bum in the seat on take-off) it expires worthless. Commodity because an economy seat on any airline (BA, Lufthansa, Easyjet, Ryanair, whatever) is pretty well the same experience on any given route (fly Heathrow to Frankfurt on BA or Lufthansa, you can't tell the difference - same overbearing security check, same boring safety announcements, same small seats, same lousy coffee flung in your face 20 min after take-off).
In a competitive commodity environment it's the low cost producer that survives the price war. I would think that BA, Lufthansa and Air France/KLM with their high cost union labour are in a heap o' trouble. To his credit, Willie Walsh did what was needed to save Aer Lingus, but BA (and Terminal 5) are proving a tougher nut, right?
Note in the article you posted it was the original low cost carrier, America's Southwest, that was indicated as the only US based airline that might still get fuel on credit. What's different about the European situation?
Comment