Are there too many Low Cost Carriers????

[WorldSeries]

With all these LCC coming out, it makes me think they will compete each other out of business in the near future. The whole theory of the LCC was a SWA model and they perfected it to be a very successful idea, but there idea was one LCC vs. the other option (flying the majors), not 4 plus LCC vs. the majors. passengers now have way too many LCC options like airtran, jetblue, ata and swa, unlike when swa had the only LCC option. SWA was so succesfull because at one time they where the only LCC and the only other option to flying on the majors. With all these new LCC, I can see the passengers loads on all the LCC dropping (spreading out over the different LCC) because the passengers will not always fly on the same LCC instead of always flying on one LCC. passengers now will have more options they fly and with out full planes on LCC they will find that there low fares are not paying the bills.

 

[46Driver]

Question is: how many of these LCC's are going head to head on routes? I would think there is plenty of room to expand without overlapping LCC routes - and thus the majors are going to continue to bear the brunt of the LCC attack. Just my opinion....

 

[WrightAvia]

Too much CAPACITY...is that what you are saying boy!

Two years before the fall, the airlines knew there was too much capacity in the system and they bought and they bought and when it all fell down, they wanted a government hand out and put the old planes out to pasture for a tax write off.

Now you are asking if there are TOO many LCC's? The market will bear out the price and those that can afford to provide over capacity of service will operate at marginal profits and those that can't will fold.

The whole country has an abundance of capacity right now, according to this news article...

http://www.jsonline.com/bym/news/jun03/151618.asp

 

[climbhappy]

your crazy pretzel logic

first of all, where did you hear or when did you come up with this "the idea was one LCC versus the majors....and the one I love is since there are many LCC, the flying will be spread out and they will find they can't pay their bills.

I'm responding because one, it's early and I'm drinking coffee..had it been the cocktail hour, i would have said , no i would have laughed and kept going.

try reading journals like aviation week and space, aivation int'l news...

your ideas are CRACKPOT!

there is no business sense to your argument. no facts , just contrived crap.

there is industry restructuring going on due to two things. the economy and a shift in buying attitudes which allow for the LCC model to thrive and it is the future.

my last point to you is the industry shakeout is the result of a massive hangover effect from the market bust caused by the dot com bubble burst. everybody was fat, dumb, happy and the airlines were raping the business traveler which let the majors hide their huge cost inefficiencies.