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#520454

AMcWhirter
Participant

Hello Everyone

You’ve forgotten about People Express. The first LCC to cross the Atlantic as reviewed in the April snapshot page:

http://www.businesstraveller.com/archive/2013/april-2013/special-reports/snapshot

Of course, the market situation can change but currently the LCC model would not work on the transatlantic routes because the cost of economy tickets offered by the big carriers is inflated by taxes, fees and charges.

As you may have guessed, it is the lucrative revenue earnt from passengers ‘up front’ which subsidises the lower prices paid by those in the back cabins.

Only in the summer months, when the conventional carriers hike their fares, would the LCCs have a price advantage.

Way back in the mid-80s, People Express charged a year round flat rate USD298 for a return LGW-EWR flight. Any taxes and charges in those days were minimal. If I remember correctly, passengers paid just a few dollars (I think it was USD3) for US departure tax.

So add on the cost of today’s taxes/charges/fees to the USD298 quoted above and, allowing for inflation over the past 30 years, you would get a similar or higher price than what would be charged by the likes of BA/AA/UA etc.

Hello BigDog

Air AsiaX was not successful in flying to LGW and ORY. We explained why in businesstraveller.com

http://www.businesstraveller.com/news/will-air-asia-x-continue-to-serve-europe

Air AsiaX says now that it only find routes of up to 6 or 8 hours to be worthwhile in what it calls its ‘core markets’ such as Australia and North Asia.

As for Norwegian … well to cut costs even more it wants to adopt a policy of only employing staff who operate long-haul flights at Thai labour rates and Thai employment contracts.

In other words all cabin staff must agree to be based in Thailand. I must stress that this covers all long-haul routes, whether to Asia or the US.

http://www.businesstraveller.com/news/norwegian-unveils-b787-details

However I am not sure whether this policy has come about. I wonder if the Norwegian trade unions objected ?