PPRuNe Forums - View Single Post - OzJet - Business is tough just after 2 days in
Old 25th Jan 2006, 21:35
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Barbossa
 
Join Date: Jan 2005
Location: Australia
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...does anyone know whether in fact the 737-200 with hush-kits can actually fly SYD-PER. I realise with only 60 seats the aircraft is lighter but does the aircraft actually have the endurance to do the run?

I agree with Pass-o-Frozo - many corporations have a travel policy that changes based on the duration of the flight. Anything over around 3 hours allows them to fly business class, whereas on anything less the policy is economy class.

Of course, the other dynamic that works against him is that "long-haul" PER flights give him less cycle utilisation (frequency). Less cycle utilisation + low seating capacity are the antithesis of profitability. He will be forced to raise his fares quite considerably. He may be cheaper than QF business class, but with so much more attributes to the QF service (freindliness aside) it will be a hard win.

I make no secret that I don't think the airline will work and have said so from day one. I agree that that is my opinion only. However, shooting yourself in the foot by constantly giving the airline a "drop dead by date" if loads don't pick up will seriously be working aganist him. He needs the regularity of corporate contracts, not the odd traveller here or there. As most contracts are with QF or VB at the moment, and are given discounts for their volume of travel, I doubt whether any would risk transferring to OZJet with the risk of the airline ceasing ops and they having to grovel back to QF to pick up their contracts.
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