AAlaxfan wrote:To not lose money!
Aurantiaco wrote:But for real though, what would be a profitable strategy?
DFW17L wrote:May plan? Identify my most profitable and best customers, and focus on them.
PatrickZ80 wrote:DFW17L wrote:May plan? Identify my most profitable and best customers, and focus on them.
While that sounds logical, it doesn't always have to be the best plan.
The problem with the most profitable customers is that there are so little of them. That means you can never grow really big.
The market is like a pyramid, narrow at the top and wide at the bottom. You're chasing the top, where you make the most money per passenger. However since that top is really narrow, the only growth you have is down.
On the other hand there are airlines like Ryanair who chase the bottom. They make very little money per passenger, however the number of potential passengers is almost infinite. That makes all together they might make more money than that small airline that chases the top.
Aurantiaco wrote:I didn’t really know where to put this, but since I figured this was opinion based, I put this here, so I apologize if this isn’t the right place to put it.
Let’s say you start an airline, and you can choose where it will be based and where it will fly, etc. What will be your model and strategy?
To be honest, I’m not good at economics, but I would think that you could just fly from secondary airports in major cities with some cheap planes, haha.
klm617 wrote:My plan would be to start a base of operations and then fly to markets where the fares are extremely high and create my own market share. I would offer fares at 25%-50% off what the full service carriers charge. I would stay out of the major markets where competition is stiff and the legacies don't want to give up market share. My first bases or operation would be FRA and LGW and I would connect those with places like PIT,DTW,CLE,STL and the like with less that daily service on a narrow body air craft. Once I establish myself in these markets I would set up a European hub and then connect passengers through there to be able to fly my narrow-bodied aircraft deeper into Europe. I think that HAM or BRU would be good places to set up that type of hub as both have limited flights to North America. I would then target any city that I could reach with my aircraft. The idea would be affordable international travel for all at a price threshold that would turn a profit..
DesertAir wrote:Target: underserved communities> Stockton, Modesto, Red Bluff, Chico, CA, Calexico, El Centro...
Goal> low cost air service and allow retired airline workers to continue to participate in the industry
Employees> retired airline pilots, FAs, ground and administrative
Everyone> minimum wage from the CEO to the baggage crew
Fares> simple structure of same fare every flight every day
Stockton to San Francisco $60
klm617 wrote:My first bases or operation would be FRA and LGW and I would connect those with places like PIT,DTW,CLE,STL and the like with less that daily service on a narrow body air craft.
klm617 wrote:I think that HAM or BRU would be good places to set up that type of hub as both have limited flights to North America..
blueflyer wrote:I'd try and find new markets to duplicate JSX. Maybe find sufficient funding to grow the operation larger faster and gain economies of scale.Perhaps in Europe.klm617 wrote:My first bases or operation would be FRA and LGW and I would connect those with places like PIT,DTW,CLE,STL and the like with less that daily service on a narrow body air craft.
Cue Eurowings/Level service to PIT,DTW,CLE,STL with rock-bottom fares in 3, 2, 1...klm617 wrote:I think that HAM or BRU would be good places to set up that type of hub as both have limited flights to North America..
BRU's available if you don't mind most of your flights using hard stands and stairs.... Gates are at a premium in the morning. Can't speak to availability at HAM, but Lufty will surely find a way to make you feel welcome.
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