why budget airlines is an absurd idea?
The whole purpose for those advocating budget airlines is to reduce the cost of travel, so more people can afford air travels. However, there are two fundamental problems as follows:
1. The main reasons why there is still not one major budget long haul airline yet are (a) As it burns a lot more jet fuel to fly long haul route than short haul route as it need more fuel to just carry the extra fuel. (b) therefore, the primary cost of a long haul flight is fuel cost, simply it will make little difference if you try to save on the cost of labor, airport charges and other non-fuel costs.
2. One very important thing which most bean counters forget is airlines do not produce jet fuels, airlines have no control over the market price of jet fuels. The oil companies have the power to raise the price according to the demand for jet fuels. Say example, if every air traveler flies one more overseas trip a year because of the success of budget airlines, then the jet fuels demand will increase 100% and the price will be skyrocketing by say 30%, then you do not need an accounting degree to know how the hell the budget airlines can make a cent?
3. Unless airplanes can fly using water as fuel, then the whole idea of Jetstar will remain as a fantasy of a retarded. At least, BB wakes up to this reality and swaps his water dream with a cream dream, now the lady star JH steps in his role to be the CEO of flying with water.
Last edited by timer88; 23rd May 2012 at 14:21.