"Delta will eventually become a LCC"

[FLB717]

Those airlines are smelling way to much jet fuel who claim LCC status with high CSM. LCC means Low Cost Carrier, not Loosing Cash Carrier.

 

[FDJ2]

FDJ2,

If thier CSM is above those numbers yeah, it thay are well above, you betcha! Anyone know what Indy's numbers are?

FLB, would you consider Airtran a LCC? I believe Airtran's latest CASM is 8.65cents.

I think we can all pretty much agree that there really isn't a standard definition of a LCC. So if an industry observer says DAL is transforming itself into a LCC, then what has he really stated? Not much in my opinion.

 

[jetblue320]

Interesting quote, and article. Also funny that Flightinfo censored the IFE product name.

Flightinfo censored the IFE company name because it has that 4 letter word (sh1t) in it. That's the only reason.

Tricky, eh?

C yaaa

 

[FLB717]

Prior to the current increase of fuel prices, our CSM was 8.1, with full 737 deliveries it was going to be 7.77. If we correct for price increases for fuel I think the current 8.65 is still a lot lower than DAL, USA, UAL, CAL etc. The only people who may be lower is JBLU and SWA. So yes we are a LCC.

 

[EngineOut]

Doesn't Airtran have two seat classes?

I'm not busting on you, buy no means, but it just seems hard to pin down exactly what a LCC carrier is, other then a marketing pitch to Wallstreet and the leisure traveler.

10 years ago you could say it was an airline that flew single class, point to point in a single type air frame (SWA). You just can't say that anymore. I suspect you're a LCC if you choose to label yourself as one. The variety of airlines business models that are now claiming to be LCC is stretching the definition. You even have airlines with CASMs in the 20cent range that claim to be LCCs.

America West has First Class and coach as well.

I think a media LCC = anybody except American, United, Delta, Northwest, Continental, and maybe US Airways. In other words, LCC is the antonym of legacy carrier.

 

[Ganja60Heavy]

One thing stands out as THE benchmark in measuring LCC's:

Can they eek out a profit despite charitably low airfares?


$79 transcon or $149 to Europe is unsustainable at the Legacy carriers.

Even a tiny quarterly profit of less-than $1 million beats a loss of $750 million.......each and every quarter!

The entire business model of the Legacy carriers was formulated during (inefficient) government regulation and nurtured on (corrupt) oligopoly tactics. LCC's never had a chance because they were undersold and put out of business before they reached critical, sustainable mass.

Now that LCC's are viable companies, the Majors have no clue how to compete because their systems are so fat and unadaptable. It's their turn to go out of business.

Now, by definition, all carriers must either become LCC's, or find a way to make people pay $1000 for a short flight even if they no longer have to.

Just my $.08 (<----that's $.02 without a Saturday Night stayover)

all the best!

 

[Medeco]

Flightinfo censored the IFE company name because it has that 4 letter word (sh1t) in it. That's the only reason.

Tricky, eh?

C yaaa

EdZachary!!!

 

[FDJ2]

One thing stands out as THE benchmark in measuring LCC's:

Can they eek out a profit despite charitably low airfares?

Which LCC, besides SWA, posted a profit last quarter? Airtran?, AWA?, Indy?, ATA?, Frontier? Aren't they all touted as LCCs? Which LCC will post a profit this quarter? If they miss two quarters are they still LCCs? If they file BK (Vanguard, AWA, ATA etc.) were they ever really LCCs?

 

[FDJ2]

Prior to the current increase of fuel prices, our CSM was 8.1, with full 737 deliveries it was going to be 7.77. If we correct for price increases for fuel I think the current 8.65 is still a lot lower than DAL, USA, UAL, CAL etc. The only people who may be lower is JBLU and SWA. So yes we are a LCC.

Let me see, so if you correct for your actual CASM and fudge it a little, then you can claim LCC status? Seems kind of fishy, but then again there really isn't a real definition of LCC, so I guess you can call yourself one whenever you want.

 

[Dizel8]

jetblue posted a profit, albeit small.