General Lee
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ATW Daily News
Southwest targets Europe, South America with long-haul low-cost model
Wednesday September 16, 2009
Southwest Airlines plans to open international routes to Europe and South America, although so far there is "no timetable" for the move, Director-Network Strategic Planning Lee Lipton told ATWOnline at the World Route Development Forum in Beijing.
"Europe and South America are our first choice. . .but currently we are still evaluating our options," Lipton said. Southwest Chairman, President and CEO Gary Kelly said last month that the LCC is "seriously considering" operating international flights to Canada, Mexico and the Caribbean as soon as 2011.
Lipton told this website he is confident that the "low-cost, long-haul" business model can work for the carrier "just as AirAsia X and Jetstar have achieved success," adding, "it could even become a trend for LCCs in the coming days."
Interestingly, Spring Airlines, the most successful Chinese LCC, also plans to launch international service. It intends to operate to neighboring Asian countries in time for Shanghai's Expo 2010 starting in May.
However, Assn. of Asia Pacific Airlines DG Andrew Herdman expressed reservations about the low-cost long-haul model, saying, "It's too early to tell if it will be a trend for the future."
He contrasted the normal low-cost business model--narrowbody aircraft, single-class cabins and online ticket sales--with a typical long-haul operation. "Once the LCCs enter the international market, they have to comply with international standards, which means they have to operate a two-class cabin on widebody aircraft and sell their tickets not only through their website but also by GDS," he told ATWOnline. "All these would make low-cost carriers look like full-service airlines, as they have a lot of convergence with carriers that choose the standard model." Herdman concluded: "I wouldn't say it can't work, but it's quite challenging."
by Katie Cantle
Wow, that would be FANTASTIC. The business model that has made them so wildly profitable would be changed, and that could mean they are in panic mode. Kelly got creamed by Bedford for F9, and costs are rising. Maybe they can add some RJs next, and then wages will come down. Enjoy that, and make sure you have a LBB hub for INTL flights. Everyone would love to go there from London, Tokyo, and Buenos Aires. Whatever you do though, start off slow for INTL flying. Try Canada first. Those crazy accents may be confusing, but nothing like the French Controllers......
Ryanair "threatened" to have transatlantic flights after the Irish Gov't said no to an Aer Lingus merger. I wonder what SWA is thinking? And, how long would it take them to get set up for INTL ops like nonstop to Europe? How many people want to go "low fare" across the pond? When did that work last? Fun times.
Bye Bye--General Lee
Southwest targets Europe, South America with long-haul low-cost model
Wednesday September 16, 2009
Southwest Airlines plans to open international routes to Europe and South America, although so far there is "no timetable" for the move, Director-Network Strategic Planning Lee Lipton told ATWOnline at the World Route Development Forum in Beijing.
"Europe and South America are our first choice. . .but currently we are still evaluating our options," Lipton said. Southwest Chairman, President and CEO Gary Kelly said last month that the LCC is "seriously considering" operating international flights to Canada, Mexico and the Caribbean as soon as 2011.
Lipton told this website he is confident that the "low-cost, long-haul" business model can work for the carrier "just as AirAsia X and Jetstar have achieved success," adding, "it could even become a trend for LCCs in the coming days."
Interestingly, Spring Airlines, the most successful Chinese LCC, also plans to launch international service. It intends to operate to neighboring Asian countries in time for Shanghai's Expo 2010 starting in May.
However, Assn. of Asia Pacific Airlines DG Andrew Herdman expressed reservations about the low-cost long-haul model, saying, "It's too early to tell if it will be a trend for the future."
He contrasted the normal low-cost business model--narrowbody aircraft, single-class cabins and online ticket sales--with a typical long-haul operation. "Once the LCCs enter the international market, they have to comply with international standards, which means they have to operate a two-class cabin on widebody aircraft and sell their tickets not only through their website but also by GDS," he told ATWOnline. "All these would make low-cost carriers look like full-service airlines, as they have a lot of convergence with carriers that choose the standard model." Herdman concluded: "I wouldn't say it can't work, but it's quite challenging."
by Katie Cantle
Wow, that would be FANTASTIC. The business model that has made them so wildly profitable would be changed, and that could mean they are in panic mode. Kelly got creamed by Bedford for F9, and costs are rising. Maybe they can add some RJs next, and then wages will come down. Enjoy that, and make sure you have a LBB hub for INTL flights. Everyone would love to go there from London, Tokyo, and Buenos Aires. Whatever you do though, start off slow for INTL flying. Try Canada first. Those crazy accents may be confusing, but nothing like the French Controllers......
Ryanair "threatened" to have transatlantic flights after the Irish Gov't said no to an Aer Lingus merger. I wonder what SWA is thinking? And, how long would it take them to get set up for INTL ops like nonstop to Europe? How many people want to go "low fare" across the pond? When did that work last? Fun times.
Bye Bye--General Lee
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