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Starlionblue
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Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 6:27 am

This was interesting. From the Washington Post. Basically it's ten big numbers that make LCCs tick, from the number of airline passengers to the number of ticketing offices. Here's are some highlights:



Posted on Sun, Mar. 07, 2004

How do low-cost airlines survive?
10 ways fledgling fliers cut costs to underprice `legacy' carriers
KEITH L. ALEXANDER
The Washington Post

1.3 million

That's the minimum number of potential annual airline passengers a city must offer before a low-cost carrier will consider it as a destination.

84.6

That's the number of employees per aircraft at Southwest Airlines. And it's the figure the industry typically uses to measure employee productivity.

Compare that with 116 employees per plane at United Airlines, a number the airline achieved last year during its bankruptcy reorganization. The United number had been 173 in 2002, said airline analyst Vaughn Cordle of Airline Forecasts.


2%

That's the percentage of ticket sales JetBlue Airways makes through traditional travel agents. By contrast, travel agents sell 61.2 percent of US Airways tickets. The number is about 50 percent for American Airlines.Selling airline tickets via the Internet, on an airline's site or on a site like Expedia.com is the lowest-cost channel for an airline -- and that's where the majority of low-cost carriers do most of their business.


40%

That's the portion of American Airlines passengers who connect to another flight to reach their final destination. The number is significant because routes that include connections are more expensive than nonstop flights.



23 and 0

This is the number of U.S. cities and foreign countries that JetBlue Airways, the nation's 11th-largest carrier, serves. It's a far cry from the 109 cities and 23 foreign countries reached by the nation's second-largest airline, United, and that's without counting United's code-sharing alliances with other airlines.


$215,000 a year

That's the average salary for a captain at Delta Air Lines. Captains at low-cost carrier AirTran earn, on average, $135,000 a year, although they also receive stock options.


$9.99 an hour

Of the industry average total compensation of $31.23 an hour, $21.24 represents wages and $9.99 benefits, according to compensation consultants Watson Wyatt, based on Bureau of Labor Statistics data.Bureau statistics show that in general industry, benefits put an employee's total compensation 38 percent above his or her wage base. In the airline sector, benefits generally add 47 percent to salary.


0

The number of downtown ticket offices low-cost carriers such as Southwest, JetBlue and AirTran operate. US Airways alone has 13 such offices.


$21 an hour

This is the average base pay, excluding benefits, of one of US Airways' 1,930 telephone reservation agents. Before the Sept. 11, 2001, terrorist attacks, US Airways had 3,762 reservation agents.The average pay for one of JetBlue Airways' 700 reservation agents is $8.25 an hour.


1

This is how many types of planes JetBlue flies -- the Airbus 320 jet, period. In 2005, however, the airline will begin taking delivery of 100-seat Embraer 190 regional jets as the airline begins flying into secondary markets. Delta flies 16 kinds of aircraft.

--------------------------------------------------------------------------------

© 2004 Charlotte Observer and wire service sources. All Rights Reserved.
http://www.charlotte.com


[Edited 2004-03-16 22:30:44]

[Edited 2004-03-16 22:32:06]

[Edited 2004-03-16 22:34:33]
"There are no stupid questions, but there are a lot of inquisitive idiots." - John Ringo
 
artsyman
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 6:38 am

Some interesting points in there, but they were quite selective in the facts that they chose. It would be more effective to compare all against all for that sort of an argument instead of choosing the worst and best on each side.

J
 
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 6:46 am

I'm really surprised that Keith Alexander came up with this article. He's usually one of the few aviation writers who understand the industry (he's been covering it for 3 years now and is doing a good job) and doesn't usually print a pointlessly misleading piece like this.

I'll echo Jeremy's comments - interesting read, but rather pointless.
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flyingbronco05
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 7:08 am

I thought AA was the largest, not UA.

fb05
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nwa man
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 7:41 am

23 and 0

This is the number of U.S. cities and foreign countries that JetBlue Airways, the nation's 11th-largest carrier, serves. It's a far cry from the 109 cities and 23 foreign countries reached by the nation's second-largest airline, United, and that's without counting United's code-sharing alliances with other airlines



Does that "109 U.S. cities" statement seem a little low for United to anyone else? I'd think it's closer to 150, not including Express or code-share cities.


N-Dub
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Starlionblue
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 7:45 am

I cut quite a bit of detail guys. Due to forum rules.
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prebennorholm
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 8:06 am

The average pay for one of JetBlue Airways' 700 reservation agents is $8.25 an hour.

How can that be possible? That's just over half of minimum unemployment benefit.
Always keep your number of landings equal to your number of take-offs
 
artsyman
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 1:52 pm

That's just over half of minimum unemployment benefit.
****

I'd like to know what country is paying $16.50 per hour for unemployment as I sure don't see it around here...although I am not on benefit so I wouldn't know for sure.
 
BD1959
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 2:06 pm

40%

That's the portion of American Airlines passengers who connect to another flight to reach their final destination. The number is significant because routes that include connections are more expensive than nonstop flights.


Is this true only of US Domestic costs? I ask only because QF seems to going further and further down the "Sydney as East Coast hub" with regards to International flights - but given their own proven financials, it must be working for them.

BD1959
 
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Starlionblue
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RE: Ten Numbers Which Make LCCs Different

Wed Mar 17, 2004 6:28 pm

Prebennorrholm. Methinks the US wages are a mite different from the Danish ones (or Swedish as I recall). Your tax money at work.
"There are no stupid questions, but there are a lot of inquisitive idiots." - John Ringo
 
richierich
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RE: Ten Numbers Which Make LCCs Different

Thu Mar 18, 2004 12:15 am

I guess after this article was written things have changed slightly...

JetBlue announced last week they intend to fly to the Dominican Republic - most definitely outside of the USA - and they have 100 Embraer planes on order. Make that 2 types to be operated by B6 about 18 months from now.
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Starlionblue
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RE: Ten Numbers Which Make LCCs Different

Thu Mar 18, 2004 12:26 am

Wow, cool news. But one cas still see how the basic strategy of limiting fleet types and having large numbers of the same type is working.
"There are no stupid questions, but there are a lot of inquisitive idiots." - John Ringo
 
flyingdoctorwu
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RE: Ten Numbers Which Make LCCs Different

Thu Mar 18, 2004 1:56 am

$21 an hour
This is the average base pay, excluding benefits, of one of US Airways' 1,930 telephone reservation agents. Before the Sept. 11, 2001, terrorist attacks, US Airways had 3,762 reservation agents.The average pay for one of JetBlue Airways' 700 reservation agents is $8.25 an hour.


What's the going rate in India? I hate the export of jobs but are there any airlines that have exported telephone reservation/customer service jobs to India?

Christopher Wu