Originally Posted by
Fletch
Not sure handling charges, etc will be lower than other operators already giving these companies business. If they are, they're low for a reason or they'll normalise pretty quickly.
I can't see how Flybe's costs will be lower than Eastern's, Loganair's or Emerald's costs. There can't be much in it even compared to easyJet or BA.
One of their competitors will have no legacy costs either. Others have profitable established routes/operations to help offset losses on competitive routes. Others have substantial cash reserves- with historic profitable operations.
Exactly. A start up isn’t free. They have been paying salaries, office costs,
PR and plane costs without any income.
Costs are unlikely to be that negotiable at LHR for a couple of Q400 a day. Handling agents there recently gave big pay rises too that will all cost money and LHR passenger fees are fairly high as well (and they are trying to raise them further). The starting price of fares barely covers the LHR passenger charge before you add plane, crew, overheads, administration, fuel, advertising etc.
On the other regional routes there is much more scope for flexibility and that should help but then IAG/Emerald might play rough and fight hard and I would imagine Emerald’s costs are lower (lower tax home base, more efficient younger fleet,
PR and advertising shared with mainline, purchasing power of their larger partner).