The driving purpose surely of EZY’s SEN operation is not simply to cannibalise their STN traffic but to give themselves a competitive advantage by offering an alternative departure point in south east England and ultimately to grow their business in this way.
The use of introductory discounts or loss leaders seems an absolute no-brainer in this situation. We can make inspired guesses as to which party is bearing the brunt of the start up costs but none of us are privy to the contractual details between SEN and EZY and how these will pan out in the longer term.
The passenger figures are telling us that SEN works and that people are prepared to use it after years in the doldrums. That is an important first step. Jacking up yields can follow. EZY are not exactly inexperienced in that area. And by the way SEN fares are not necessarily that cheap at present - check EZY's website.
Certainly EZY will have their own projections on the growth of traffic and revenue and they will have assessed the reality of the situation already and how actual performance compares to the plan. Consistently since April, EZY’s public statements about their progress at SEN have been extremely positive.
But then they would say that, wouldn’t they ?
Last edited by Tagron; 15th August 2012 at 20:23.