Originally Posted by Australopithecus
In my forty-five years in and around this airline caper it is my observation that profits can be had in making ground equipment, supplying catering (sometimes), providing cost + ground handling services, consulting to the people with hundreds of aeroplanes and no profit, navigation services, government departments, nav charges, insurance, pilot training, simulator training, crewing agencies, "expert" commentary for hire (that means you, GT!), I.T., reservations systems, security, leasing & financing aircraft
There fixed it for you Australopithecus. Why so many aircraft, so many different types, why LCC's? Why why why?
Its all about maximising the number of aircraft flying (or parked, as long as the leasing charge is paid). LCC's are merely the mechanism to maximise demand for leasing companies. The normal market mechanism is being driven in reverse.
This is a supply, not demand driven market, the Australian market is being force fed capacity for a reason. The Australian market is litterally awash with capacity, yet more aircraft keep arriving.
Leasing companies get their money win lose or draw. Who is behind the leasing & financing.