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Old 19th Nov 2013, 09:29
  #1962 (permalink)  
MCDU2
 
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Aircraft are not the issue, they can lease more should they wish to. Don't make the mistake of comparing the FR model of flooding cheap seats on new routes with AL. AL is a mature business with a different business model to FR. AL crunches the numbers and if they cant project a profit from the get go then they wont operate a new route. The current business model is all about yield management, ancilliary revenue and increasing aircraft utilisation during the winter months to smooth out the work. Hence the Novair contract. The recent announcment of new routes for summer 2014 and increases on existing routes will have both fleets working hard. Also there are lots of opportunities to be reviewed for both the 320 and 330 fleets during winter. The Little Red contract could lead to additional work from other airlines/operators.
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