[MarcusUK]

VirginBlue (& VAustralia) made AU$62.Million profit posted in last few weeks. This may not sound a lot of money but it is against a strong Australian economy, not in recession, & good for a small Australian potential population / Customers.
In addition, they have ordered 50 new aircraft for expansion. They already run brand new 737-7/900’s as well as 4 new superbly designed cabins on the 777-300ER.
They also have lounges, the usual add on’s if you like, but are not fully low cost, in running a FF Program, linked to virgin Airline Groups around the world also.
This is a slightly differently set strategy, between low cost & full service Airlines but positioned in the Middle.
A very clever & unique strategy, for what will become, one of the largest Global Airlines (as they shall all join up end of 2010 in the Virgin Group).

This perhaps is the best indication of how Low cost is doing in Australia / Oceania region.

[RickInTheValley]

A very valid question!

I can sum it up easily for you, at least as far as what’s going on in the USA (the phenomenal rise and growth of Southwest and the respectable success of other LCCs such as Frontier, AirTran, Spirit, and Allegiant). Since 9/11, the “legacy” carriers have been hell-bent on slashing their way to profitability, removing so many amenities that were previously standard (free food, checked luggage, pillows, blankets, etc.) that now the savvy American air traveler knows that there’s no real difference in the quality and comfort of a flight with a major airline or a “budget” carrier.

In fact, online reviews bear out that often passengers accustomed to flying on the majors are pleasantly suprised by the upbeat attitude of LCC frontline employees.

As mentioned in a previous post, air travel in general has become considered so loathesome regardless of the company name on the ticket that fed-up flyers have just decided to go for the cheapest option.

Major USA airlines bemoaning their loss of passengers to LCCs have no one to blame but themselves.

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