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Old 2nd Nov 2001, 00:58
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LAVDUMPER
 
Join Date: Mar 2000
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Hey Guv,

I think GO's recent reduction in service in Scotland proves that low-fares alone ensure success.

Need to look at both sides of the equation - boost revenues (through either yield management or increased frequencies) and cut costs (reduce unit costs via economies of scale - and other means).

I don't think a 4 million Pound profit in 3 years is anything special - in fact, I think that amount is anemic in a volatile business like the airline business - not much of a cash cushion during bad times...

Easy wins because it has successfully built both an effective operating cost structure and an unbelievable brand name - its reputation precedes it... I am sure NCL residents knew precisely what to expect before Easy's first flight. I predict Easy will do VERY well there.

Cheers
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