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Old 27th Mar 2007, 12:31
  #179 (permalink)  
skyman771
 
Join Date: Feb 2005
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Re Open Skies It is very easy to jump on the band wagon of this as being bad for the regions re longhaul US prospects. Insofar as I can see all that it is bad for is the pressure that it puts on UK domestic slots into LHR which has been widely publicised and which there is already some evidence of at MME when reviewing BMI's current operations there. I really can not see this as having any other effect upon the regions, if the demand is there & the resource capable of supporting the operations then these services should either propsper or fail as they would under previous ecconomic trading conditions.
I have yet to see any ecconomic model that suggests that there is infinite demand for US longhaul out of LHR, it is clearly the preferred UK destination of airlines but even reviewing pre "Open Skies" conditions the demand was not strong enough to force up fairs even to the extent that premuim airlines such as UA have struggled on some destinations.
You can take the discussion in another direction, limited availablity of slots & high volume dictates larger aircraft, which in itself releases smaller aircraft for other destinations. Take CO for example, their strategy of lower capacity to more remote destiantions is paying off & why should this now change ? Their 757's for example will not 'double up' on a route which supports a 777, and are to be around presumably for may years.
Finally you have the punter who as normal comes a poor last in this, if they are given the choice then few in the regions are likely to want to go anywhere near LHR if they can fly direct. The arguments are not new they are to an extent simply another view of the running argument of Europe - A380 & major hubs vs. US B787 & regional.
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