HalinTexas
昇る太陽の土&#
- Joined
- Feb 14, 2004
- Posts
- 1,536
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It appears that their break-even LF was somewhere above 48.I wonder what their breakeven load factor had to be with only 48 seats on a 757 (even at their prices)? That would be too high with oil prices at current levels.
I am betting that the French version (L'Avion) out of EWR to Paris Orly will be next. It only operates 2 757s.
The sky is falling! The sky is falling!
Maybe not "your" sky, but try telling that to the poor folks at ATA, Maxjet, Aloha, Eos etc....even truck driving is not an option now! good luck to all of us in this dog eat dog profession!
I say by 2012 there will be 3 major carriers, 2 LCC's, 2 maybe 3 cargo carriers, and 4 regionals and that's it.
Half the pilot's flying for a US carrier today will be doing something else whether it's flying VLJ's or out of the business altogether
another stupid business model bites the dust
It appears that their break-even LF was somewhere above 48.
Another stupid business model bites the dust.
I just thought that;
was way too gloomy not to mention an irrational prediction....especially the part about "2 maybe 3 cargo carriers".
Good point, all.in boom times, all the stupidity comes out. money is free and cheap. stupid sells and survives... EOS was an idea not really stupid, but grossly limited in terms of their market. Midway had a great market and loyal customers, but when recession struck, they too saw the reality of a bloated cost structure and being too small too to generate enough cash to survive.
these ideas never make it when the levee breaks.
conversly, airtran, is big enough, in my view and Midwest is not. allegiant can make it since they compete with no one in the markets they serve. No sooner than they had pulle out of GSO and SX had quit, they came back in. they are different in their approach which is why they will make it...I would be shocked if allegiant filed.
Good point, all.
I too think Allegiant has a good chance if it keeps costs genuinely down.
Caveat Emptor should apply to investors too!The best business models are recession proof. With that said, it is difficult to become recession proof when you have low-volume seating (48 seats). Let's hope the business school case-study writers are recording this as a warning to future EOS managers out there... I am sure there are some very upset investors out there.