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Old 18th Aug 2011, 12:52
  #58 (permalink)  
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I think it's fair to say, the guys up front paying top dollar haven't been enticed in sufficient numbers.

You can't build a hub beyond your local market without that sort of cross subsidy alas.
There is an important variable here not considered. Top Dollar? Significantly more than Y fares, yes - but no longer the yields Aer Lingus sustained on the West Coast routes during the now, almost long forgotten, years of plenty.

Roundtrip fares to the US West Coast with EI approached EUR 5,500 return in the then Premier cabin. At the time of closing the route in 2009, EI were down to offering pro-active upgrades to fill the forward cabin, at values some 25% of more off their peak.

Premium revenues on a US West Coast route, would average at least 30% less per passenger, than when the route was previously operated. EI are not in a position to command anything higher than that - given the intense price competition ex DUB with regard to the forward cabin, current market conditions, current price/demand equilibrium etc.

Strong volumes are important - revenues proportional to volume are critical, yield is king.

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