The airline’s model would facilitate a 30% to 50% reduction in fares relative to existing averages while producing profits for the carrier.
Ahah! I detect the authentic voice of an MBA, with spreadsheets showing the profits to 2 places of decimals, once the income predictions and cost predictions, sorry guesses, have been adjusted to produce that outcome.
Not to worry, there's usually an sucker who can be persuaded that if you reduce the revenue
"relative to existing averages", you can reduce the costs by even more
relative to existing averages, so as to achieve the profits that somehow elude the multitude of carriers on the route whose revenues and costs
are the
existing averages.
The other problem with MBAs is that the part of the job that needs life experience is beyond their grasp, obviously, so they forget to take competitive reaction into account. There's more than enough spare capacity going back and forth across the pond to sustain a price war that kills off any new entrant that makes it as far as the expensive inaugural.