PPRuNe Forums - View Single Post - NOW? News?
Thread: NOW? News?
View Single Post
Old 29th Jun 2003, 19:54
  #2 (permalink)  
jmc-man
 
Join Date: Jan 2003
Location: Manchester
Posts: 207
Likes: 0
Received 0 Likes on 0 Posts
Listen up.... at the risk of repeating myself.

NOW is not financed yet........and the finance requirements will rise dramatically with an October start. Just look at the easyJet losses for the Winter period. The CAA Consumer Protection Group (formerly the SRG) will require a significant increase in finance to get through the first winter

NOW's "unique" sales point is the fixed fare.....how come no other Low Cost Operator uses this? Because it doesn't work....the basis of success of Low Cost operators is Cash Flow, get lots of cash up front. Why would anyone pay in advance for a NOW ticket when they can buy it on the day for the same price.

NOW's route planning is flawed. It has chosen routes previously tried by Low Cost operators which have had limited or no success. I understand why they are doing it, to try to stop an immediate war with Easy, but they will get hammered by Easy anyway, having decided to start up on their doorstep.

NOW are still lacking a credible team. I know they have recent success in attracting a couple of senior GO/EASY people, but the GO guy had no further career opportunities available to him, and the Easy Guy has been dicked about so much I know he has been looking elsewhere for some time. Notwithstanding that....they still don't anyone who the CAA would accept as an accountable manager under an AOC.

I wish them well in their endeavours but I would urge caution to anyone giving up a good job to go to an airline which such serious gaps in it's business plans.

Be careful out there


jmc-man
jmc-man is offline