- have to disagree with you on some of your points. WIth the European low cost carriers, all
fares are non refundable; and if you don't show, you lose your money. They therefore don't have a no-show problem.
All of the low cost carriers here lease: it gives them plenty of flexibility. They buy, but then immediately refinance. It also keeps the liabilities off balance sheet, which is important for them. Another major advantage is that they can contract for fleet renewals, so that they get their aircraft swapped out every few years - without having to take the financial risk that the market will be bouyant at the time.
As for outsourcing, again you're wrong - as a buyer in a buyer's market, you can shop around for the best deals and get them for a fraction of the cost of having to set up and run MX and other services. Over here, most airlines have realised that having MX inhouse is simply a waste of money - which is why people like FLS, Marshalls etc are around. Through outsourcing, MX costs are reduced because they are spread amongst many more aircraft than they would be if it was an inhouse function.
Other than that, I agree with you!