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Old 5th Feb 2021, 12:09
  #136 (permalink)  
Skipness One Foxtrot
 
Join Date: Dec 2011
Location: London
Age: 42
Posts: 1,571
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The "tipping point of maturity" refers to the growth trajectory maturing and bold increases in revenue no longer being able to keep the cost base so low. Markets plateau, growth slows and routes mature. In many cases, loads of people go once at low prices and over time volumes fall back to sustainable levels, often in ways Ryanair didn't make enough money on and so they walked away. UK domestic is a good example, low fares drove STN-PIK/EDI/GLA to high volumes but lack of ancillary sales and stiff competition meant aircraft were redeployed to new routes with lower costs and better airport deals.

The new reality is that cannot go on as there's not enough new markets to move into. This maturity is also why MOL has intentionally moved away from telling customers to FO.

I see now the Southside may be the Dagobah system, all is clear now
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