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Old 29th Aug 2005, 15:35
  #43 (permalink)  
TheOddOne
 
Join Date: Sep 2004
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- Wasn't Harry Goodman very succesful at this kind of leaseback?
Er, no, Air Europe went bust, big-time.

In 1990, piers 1 & 2 at Gatwick were full of orange-painted aeroplanes, with a rapidly expanding route network and people thought that he was doing well. However, there was a chaotic mix of aircraft types, as diverse as B757 and F100. The first Gulf War put most of the nails in the coffin but I think that the mistakes made with mixed fleets etc have been learned. It probably matters less whether it's B738 or A319 but that you've as much commonality as possible.

The other mega plus for today's so-called lo-cos is the sophisticated booking and pricing tools - this is a major departure from the business as it was 15 years ago and is I think the biggest key to success. Pax are now used to the idea that if they book well in advance it'll be cheaper. I was trying to explain the concept to a hotelier friend who offers deep discount to last-minute bookings, on the basis of marginal cost for a room he mightn't otherwise sell. He says there's nothing so perishable as an unsold hotel room, but an empty airline seat is exactly the same. If someone turns up at the last minute, desperate for either, then they'll pay top dollar. The whole model has turned through 180 deg. Will the Inclusive Tour industry catch on to this, or are they a dead duck, now?

Cheers,
The Odd One
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