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So if CX started a LCC and people worked for free, the fares would be approx 20% lower than they are now. The rest of the costs would be the same. The savings that companys like Southwest make is by flying to secondary airports and thus lower their route operating costs.(Inflt catering is only a small % of total costs so I didnt bother including it)
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I agree. LCCs also save money by flying the same freakin' plane for the entire fleet, as well as heavy fuel hedging. Obviously Oasis does not have any fuel hedged at the moment, and even their small fleet of 747s use different engines. I've read that they are currently out there to make a name until they IPO, and I assume that they are just trying to break even until then. I hope CX will be able to stand this period...