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Airlines Under Seige  
User currently offlineScotron11 From United Kingdom, joined Feb 2004, 1178 posts, RR: 3
Posted (10 years 5 months 3 weeks 5 days 23 hours ago) and read 1481 times:

An article in this weeks Economist magazine lists the top ten airlines in market capitalization as follows:

WN
SQ
CX
JL
LH
BA
AN
QF
Ryanair (Sorry, dont know their code)
AF

On passengers flown, however, it completely changes:

AA
UA
DL
NW
JL
BA
AF
LH
WN
QF

Interesting to see WN make both lists. Article states the case that over the long term, airlines should concentrate on O&D traffic rather that connexions thru so-called hubs as connexion traffic requires much more manpower and is a lot less productive. for groundcrew and equipment alike, than straight point-to-point. A recent study by Booz Allen observed that O&D traffic is 1.6 to 2 times more profitable that connexion traffic.


1 replies: All unread, jump to last
 
User currently offlineFRA2DTW From Germany, joined Feb 2004, 322 posts, RR: 0
Reply 1, posted (10 years 5 months 3 weeks 5 days 15 hours ago) and read 1413 times:

I think that's why you are seeing an explosion of regional jets to serve point-to-point traffic where loads don't justify large planes. The question then becomes, what will become of the hubs? If you keep diverting passengers away from them, at what point do they become unprofitable to operate? They do require a certain economy of scale to justify the employees, infrastructure, large planes, etc.

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