As an airline oldy but goody the key to an LCC model is simple but hard to do:
1) Single Fleet
2) Out source smartly
3) Strong smart sharp people (not dyed in wool legacy guy - can not adapt)
4) Top notch key operations no BS people.
5) Revenue Mngt that is sharp aggressive flexible and again no BS.
And a board who is conservative and liberal depending on the market.
How could any new airline order 200 planes in such a short time. What detailed business plan did they have?
Did they actaully think about the following issues - plus many more?
a) Asian market analysis
b) Population trends
c) Regualtory issues
d) Rights to fly into and over many many countries.
e) bi-lateral agreements.
f) Foreign ownership rights or lack of them in many countries
g) Staffing issue - getting the right people at right cost - still a very lean market for good people who actaully can do the job in key positions
1) Operations, COO, Chief Pilot, Airport Ops, Flight Ops, Ops Center, Engr, Quality, Program Mngt
2) Commercial,- Rev Mngt, Sales, Mkt, etc etc
3) Support HR, Finance, Legal
h) Aircraft and engine financing, leasing, fleet management
This is a tall order anywhere but especially Asia where this talent is hard to come by.
This is a tough killer business where millions and billions have been lost - but some seem to make money while the majorty fail and will fail - just a short reminder:
TWA, PanAm, Braniff, People. Laker, Piedmont, Vueling, Click, Indigo, Sahara, Ansett, Deccan, King Fisher, Go, I could go on all day..........................and this list will grow more - it would be larger if the government airlines Garuda, Thai, Vietnam, Qatar, Etihad etc where allowed to fail............
Enjoy - hope I can reti
re down the road................