Rjpieces From , joined Dec 1969, posts, RR: Posted (11 years 4 months 3 weeks 5 days 14 hours ago) and read 1304 times:
I was hoping for somebody to clear this up. Why exactly is it that LoCos make more money on shorthaul, high frequency flights? Also, why did B6 decide to expand with a lot of transcon flights rather than building up a shorthaul network?
I hope this question is clear...I'm looking for info related to stage length, fuel burn, etc, and the difference in economics of LoCos between shorthaul flights and longhaul flights.
JAL777 From , joined Dec 1969, posts, RR:
Reply 1, posted (11 years 4 months 3 weeks 5 days 14 hours ago) and read 1295 times:
LoCos suceed principally for two reasons:
Low Costs: By keeping the costs side of the equation low, they don't have to charge outrageous fares to break even. A flight can break even at less then 70% capacity usually.
High Frequencies: Planes make no money sitting on the ground... The more time they spend in the air, the more their earning income.
While the margins might be low, the high frequencies guarantees large amounts of margins and, hence, profit.
As for B6's short-haul network, its hard to build a succesful shorthaul network in the Northeast. For those airports that would support multiple daily flights, the cost of operation at those airports is prohibitive. For the smaller airports, its just not worth opening a new station for 1 daily flight.
Srbmod From , joined Dec 1969, posts, RR:
Reply 2, posted (11 years 4 months 3 weeks 5 days ago) and read 1258 times:
The longer the stage length, the smaller number of flights an a/c can do a day. Some LCCs have a/c that spend 18-20 hours a day in flight doing transcons, while other a/c RON @ airports, but do a lot more cycles a day. Here's an example, ABC Airways has one a/c that flies the following legs on a certain day:
And another a/c that does these legs that day:
An a/c that does the short haul flights ends up doing between 8-10 flights a day, while the a/c that do the transcons usually does about half as many, and don't terminate in many cases (except when the do an operational swap that puts the a/c on a schedule and routing that allows it to RON somewhere for MX checks).
While the transcon a/c may be in flight longer each day than the short haul a/c, they don't offer as many seats per day in the system as the numerous frequencies operated by the a/c operating shorter flight.
Rjpieces From , joined Dec 1969, posts, RR:
Reply 3, posted (11 years 4 months 3 weeks 5 days ago) and read 1241 times:
Thanks for the explanations guys.
So what are the advantages to transcon flights? And why did/does B6 continue to expand heavily with transcons if more money can be made on shorthauls? What advantages and disadvantages do the transcons pose?