Low-cost airlines grab 30% of travel market vs. full-price rivals

[DieselDragRacer]

http://www.usatoday.com/travel/flights/2009-11-10-airshuffle10_CV_N.htm

"The biggest thing that has happened in this industry over the past decade isn't 9/11, or recession, or SARS, or bankruptcies or mergers," says aviation economist Dan Kasper at LECG, a consulting firm in Cambridge, Mass. "It's the deep-market penetration by the low-cost carriers."

"For a lot of us (frequent travelers), the shift toward the low-cost carriers isn't about price," Schmincke says. "You can get pretty much the same prices in coach on the Uniteds and Deltas of the world as you can on the Southwests. And a lot of us still don't mind paying more for first-class service. The shift really is because of flight availability," he explains. "You can get to so many more places these days on the low-cost carriers that you couldn't 10 years ago."

 

[Ty Webb]

Talk about gross over-simplifications.

The second quote doesn't even make sense, in that it doesn't explain why anyone would choose to fly on a LCC over a Legacy other than the fact that they are also available, but for the same price.

Is he trying to say the LCC's offer point-to-points that are not offered by the Legacies? Is he simply saying that the LCC service is now more readily available? or is he just talking into his hat?

 

[Phrogs4ever]

LCCs have done a good job marketing the myth of a low cost carrier. Out of Houston, I can get to any Southwest destination for the same price...with "meals", inflight entertainment, and FAA approved parts

 

[jonjuan]

LCCs have done a good job marketing the myth of a low cost carrier. Out of Houston, I can get to any Southwest destination for the same price...with "meals", inflight entertainment, and FAA approved parts

LCC means low operating cost, not necessarily low fares. It's how most are able to turn a profit, versus higher operating costs, but similar fares, of unprofitable HCCs.

 

[andyd]

LCC means low operating cost, not necessarily low fares. It's how most are able to turn a profit, versus higher operating costs, but similar fares, of unprofitable HCCs.

that is correct, however the retarded cattle mentality public seem to equate Low Cost Carrier with "low airfare". Legacy carriers meet or beat Low Cost Carriers on nearly all of their routes, but the average passenger is under the false impression that low cost carriers are cheaper.

The remaining Legacy carriers need to do an ad campaign and public educational campaign on this issue......we are loosing the PR battle badly., same goes for the mis-perceptions of pilot wages.

 

[BRA]

It seems like a piece to the puzzle is missing. Just looking at that one could conclude that as the legacies shrunk the total number of planes stayed the same as the SWA's and Airtran's grew. The entire system of a UAL or Delta may not be quite as different when you consider the number of Regional Jets flying.



"Thus, the CEOs at several of the high-cost carriers, such as United's Glenn Tilton and US Airways' Doug Parker, continue to search for merger partners. "

Isn't the USAir ticker symbol LCC? Wasn't UAL in bankruptcy for over 2 years cutting costs? I am not bashing any pilots but it is funny to read that line and think about the recent past. It is just a rough freaking business.

 

[jonjuan]

that is correct, however the retarded cattle mentality public seem to equate Low Cost Carrier with "low airfare". Legacy carriers meet or beat Low Cost Carriers on nearly all of their routes, but the average passenger is under the false impression that low cost carriers are cheaper.

The remaining Legacy carriers need to do an ad campaign and public educational campaign on this issue......we are loosing the PR battle badly., same goes for the mis-perceptions of pilot wages.

Not all are "retarded cattle mentality." Many, many business travelers prefer WN with its flight frequencies, friendlier, younger crews, and overall ease of doing business with. Travel, for the most part, has been commoditized and most people ignore such things as "meals at mealtimes" when booking trips. They are comfortable and are familiar with the Southwest website and pricing and basically trust that it's the lowest. They know what to expect when they order a Big Mac as they do when they arrive for their WN flight. They know that they will always be on a "spacious 737" and never have to see an RJ or a propeller plane. In fact, I would bet that most people would pay a little more to fly WN than deal with the negative perception of dealing with a legacy and its cranky FAs and cramped RJs. I think it's genius that they don't sell fares on travelocity where one can compare.
THe PR battle has been lost as far as differentiating ones self ala "we know why you fly" BS. Unfortunately, most people could care less if pilots literally flew for free as a hobby.

 

[DH106]

For the love of God, can we please stop calling these regional airlines Low Cost Carriers?

Let's call them what they really are: LOW PAY CARRIERS.

 

[jonjuan]

For the love of God, can we please stop calling these regional airlines Low Cost Carriers?

Let's call them what they really are: LOW PAY CARRIERS.

And CAL/DAL/UAL would then be HIGH PAY CARRIERS?

 

[Phrogs4ever]

And CAL/DAL/UAL would then be HIGH PAY CARRIERS?

Less Lower Pay Carriers.

 

[Phrogs4ever]

basically trust that it's the lowest.... genius that they don't sell fares on travelocity where one can compare

Basically trusting that they are getting the lowest fare without verifying would constitute cattle mentality. I don't know what a retarded cow would do, though.

Not allowing the consumer to compare their prices...like I said, they're doing a good job of marketing an illusion.

 

[DH106]

And CAL/DAL/UAL would then be HIGH PAY CARRIERS?

Donjuan, I'm not sure I understand your question. We all know that legacy payscales aren't what they used to be, for a variety of reasons. There's still a world of difference between CAL/DAL/UAL pay and Republic pay, though. But, if you disagree with referring to regional airlines as Low-Pay Carriers, then please explain. Thanks.

 

[jonjuan]

Donjuan, I'm not sure I understand your question. We all know that legacy payscales aren't what they used to be, for a variety of reasons. There's still a world of difference between CAL/DAL/UAL pay and Republic pay, though. But, if you disagree with referring to regional airlines as Low-Pay Carriers, then please explain. Thanks.

LCC-Low Cost Carrier, i.e. Airtran and the biggest Southwest. It means Low Operating Cost carriers, but you somehow disagree and thing it should mean low pay carrier. Do you really think WN is low pay?

 

[DH106]

LCC-Low Cost Carrier, i.e. Airtran and the biggest Southwest. It means Low Operating Cost carriers, but you somehow disagree and thing it should mean low pay carrier. Do you really think WN is low pay?

I see what you mean. In my post, I had said that regional carriers (which obviously doesn't include Airtran, Southwest, etc.) should be called Low-Pay Carriers. Often, the regional carriers are also referred to as LCC's. Southwest pay is not low at all.

 

[jonjuan]

I see what you mean. In my post, I had said that regional carriers (which obviously doesn't include Airtran, Southwest, etc.) should be called Low-Pay Carriers. Often, the regional carriers are also referred to as LCC's. Southwest pay is not low at all.

http://en.wikipedia.org/wiki/Low-cost_carrier
A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline) is an airline that generally has lower fares. To make up for revenue lost in decreased ticket sales, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc.
The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. While the term is often applied to any carrier with low ticket prices and limited services, regardless of their operating models, low-cost carriers should not be confused with regional airlines that operate short flights without service, or with full-service airlines offering some reduced fares.