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Air Asia- Hub & Spoke Without Costs & Risks  
User currently offlineAmmunition From United Kingdom, joined Feb 2002, 1065 posts, RR: 4
Posted (4 years 10 months 2 days 4 hours ago) and read 3296 times:

It appears to be so, all the benefits of hub and spoke without the complications, risks, costs. One all the longhaul fleet gets established, they could be a force to be reckoned with in south east asia, I wonder what strategies MH, TG, SQ e.t.c are employing to minimise the risks.

I think the question is will they replicate the model in Bangkok e.t.c once their presence increases.

Also, the 737's are due to go back to the lessor soon, will this mean Thai Air Asia getting additional 320's?

How are Air Asia funding all their aircraft? I know they don't intend on paying a divident for the forseeable future, which is logical for a relatively new airline with an emphasis on growth.

How will the likes of MH be affected?


Saint Augustine- 'The world is a book and those who do not travel, read only 1 page'
7 replies: All unread, jump to last
 
User currently offlineAmmunition From United Kingdom, joined Feb 2002, 1065 posts, RR: 4
Reply 1, posted (4 years 10 months 2 days 4 hours ago) and read 3283 times:

Also, will we see any European LCC copy the model? FR could do well out of STN for example, or EZY from LTN/LGW


Saint Augustine- 'The world is a book and those who do not travel, read only 1 page'
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19230 posts, RR: 52
Reply 2, posted (4 years 10 months 2 days 4 hours ago) and read 3279 times:

Yes, a number of people, like myself, have self-connected between AK and FD flights and also from D7 to AK. For the airline, this does, as you mentioned, obviously mean that they do not incur the costs, responsibilities and complexities involved in transferring passengers and luggage.

Quoting Ammunition (Thread starter):
will this mean Thai Air Asia getting additional 320's?

Presumably FD will replace its 733s with 320s on a one-for-one basis. Likewise QZ.

Quoting Ammunition (Reply 1):
Also, will we see any European LCC copy the model? FR could do well out of STN for example, or EZY from LTN/LGW

In my backpacking days, I self-connected between FR, EZY and other budget airlines' flights. Indeed, I sometimes stayed in the terminal overnight, for example when I flew NQY-STN and then STN-BLK.



[Edited 2009-11-25 13:08:03]


"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently onlineViscount724 From Switzerland, joined Oct 2006, 25369 posts, RR: 22
Reply 3, posted (4 years 10 months 2 days 2 hours ago) and read 3151 times:



Quoting Pe@rson (Reply 2):
Yes, a number of people, like myself, have self-connected between AK and FD flights and also from D7 to AK.

Unless you allow a very long connecting time, aren't you concerned about the risk of a delay or flight cancellation causing to lose your entire fare if you miss the connection?


User currently offlineMariner From New Zealand, joined Nov 2001, 25291 posts, RR: 85
Reply 4, posted (4 years 10 months 2 days 1 hour ago) and read 3098 times:
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Quoting Pe@rson (Reply 2):
For the airline, this does, as you mentioned, obviously mean that they do not incur the costs, responsibilities and complexities involved in transferring passengers and luggage.

I didn't get that - I didn't understand what "complications" the OP meant.

Are the costs, responsibilities and complexities of transferring passengers and luggage really that significant?

I know some LCC's in Europe don't do it, but a number of LCC's in the US and Australia/NZ do (and some also interline) - and they are profitable.

 confused 

mariner



aeternum nauta
User currently offlineUALWN From Andorra, joined Jun 2009, 2806 posts, RR: 2
Reply 5, posted (4 years 10 months 1 day 22 hours ago) and read 2969 times:



Quoting Mariner (Reply 4):
I know some LCC's in Europe don't do it, but a number of LCC's in the US and Australia/NZ do (and some also interline) - and they are profitable.

Most (if not all) LCCs in Europe don't provide connections: U2, FR, Vueling/Clickair, to name the ones I've used.



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User currently offlineAmmunition From United Kingdom, joined Feb 2002, 1065 posts, RR: 4
Reply 6, posted (4 years 10 months 1 day 22 hours ago) and read 2952 times:



Quoting Mariner (Reply 4):
Are the costs, responsibilities and complexities of transferring passengers and luggage really that significant?

Yes, additional IT systems, training, ground handlers, passengers services, complex fare structures, compensation for delay/re-booking and many more- all of which are avoided by point to point flying.



Saint Augustine- 'The world is a book and those who do not travel, read only 1 page'
User currently offlineMariner From New Zealand, joined Nov 2001, 25291 posts, RR: 85
Reply 7, posted (4 years 10 months 1 day 22 hours ago) and read 2924 times:
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Quoting UALWN (Reply 5):
Most (if not all) LCCs in Europe don't provide connections: U2, FR, Vueling/Clickair, to name the ones I've used.

I'm just surprised that it is perceived to be such a game-changing money saver.

I was checking out the difference in the costs of Easyjet compared with Airtran. It was only rough, back of the envelope stuff and it involved currency fluctuations and, obviously a conversion from kilometers to miles - on either of which I could have been wrong - but I couldn't see that much difference.

Easyjet's costs may have been a tad lower, but at the same time, I wonder what the effect is on revenue.

In the US, when Southwest made its bid for Frontier, connecting traffic was given as part of the reason why:

http://www.dallasnews.com/sharedcont...us.ART.State.Edition1.3ff1aef.html

"About 42 percent of Frontier's traffic connects through Denver; those fliers aren't as profitable as travelers coming or going to Denver, and opinions vary on how much of the connecting traffic Southwest would want to keep.

"All of it," said Denver-area airline consultant Michael Boyd. "The myth out there remains that Southwest is a point-to-point carrier. They're not. Without the connecting traffic, they can't make it."


Every airlines wants as much O&D traffic as they can get, but connecting traffic sure helps fill up a plane.

mariner



aeternum nauta
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