Originally Posted by
Capot
I think the LoCos were ahead of you there......
Not from where I'm sitting. The LoCos have only enforced a sorely needed financial discipline on the passenger sector, but they're not offering anything original. The best performing LoCo (to the best of my calculations) is our old friend in the blue-and-yellow corner who brings in an average profit-per-customer of just 6€31, more than double that of Southwest. The highest figure I can find in Europe or the US is Lufthansa at 9€60 and of course these positive figures must be offset by the basket cases like AirFrance and Flybe
Given the effective monopoly that relatively few players have in this sector, those figures are ludicrously small, especially when one considers how the number of airports offering scheduled commercial flights is reducing all the time. Obsessing over CASMs and load-factors blinds airline managers to the revenue they are losing by encouraging passengers to spend their money elsewhere. The walls of the silo remain intact.