LCCs are not the future
I disagree
LCCs always come and go but never stay.
The LCC is usually headed by one person who mismanages the company, takes the money and runs, gets absorbed sold or liquidated or is forced to fly puny routes due to the sake of governors ruling the routes in which the major airline flies to preserve 'quality' that a LCC never has or equipment restriction (range and capacity). You need an airplane bigger than a 737 to survive! This is one of the fate sealers of a LCC. Of course Sir Freddie did ok with a DC10 but where is he?
LCCs always are in training mode. When the employee has enough experience tucked under their belt, whether it be hours or years with a clean record they bolt for the major airline for better compensation and pension. This is how a LCC is run....cut labour costs and run a no-frills outfit and attract the minimum experience labourer.
Sometimes, a savvy owner might get smart with fuel hedging or some other form of diversification to keep the LCC alive and in competition but it usually is short lived.
The LCC if it survives evolves into something other than a LCC. Labour costs can only be controlled for a short while due to unions and the cyclical nature of hiring and furloughing in this industry. When you can't leave a LCC because no one is hiring then you stay...if you stay long enough it is sometimes better to remain there and let your union have more leverage through population of membership...and therefore through contracts increasing your wage and compensation raher than leave for a major airline.
I think that the statement should read:
LCCs have a small place in the future rather than LCCs are the future.
I am still looking for air wal-mart and air aldi's to start flying...
tnx for a great forum!