prosa
Posts: 5389
Joined: Sat Oct 27, 2001 3:24 am

No-Frill Airlines Are No Longer Highfliers

Fri Jan 30, 2004 1:43 am

Article in Investor's Business Daily, reprinted in Yahoo! Finance:
http://biz.yahoo.com/ibd/040129/general_1.html
"Let me think about it" = the coward's way of saying "no"
 
AApilot2b
Posts: 451
Joined: Wed Nov 01, 2000 12:38 pm

RE: No-Frill Airlines Are No Longer Highfliers

Fri Jan 30, 2004 2:29 am

I am really not surprised at this. Every time one turns around there is another low cost, no frills, airline starting up. I imagine that many of these carriers will have a day in the sun and then collapse as the market becomes over run with too many of these guys (survival of the fittest will play a big role here). In the case of Ryanair, I am not too worried. They are well established and have a strong brand that will ride out any slight downturn in shares. Jet Blue will probably be fine as well. Southwest seems altogether, untouchable. One thing that has resulted from the most recent airline problems is that the major carriers have had to learn how to be more efficient. They are coming back, ready to play the LCC game. I read an article that stated the novelty of LCCs is beginning to wear off, and new entrants will need to offer a little more service to gain a competitive edge. It will be interesting to see who survives and who falls (not that I wish for anyone's collapse). It seems those that are careful to stay in their niche market are in a better place to succeed.

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Photo © Alexander Jonsson


Ryanair has a strong brand; a name common to many around the world.

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Photo © Jean-Luc ALTHERR


New entrants like Jet2 offer assigned seats as an added perk to low cost flying.

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Photo © Jerry Search


And then there is the King. The always profitable, invincible Southwest.