Low Cost

[William73]

WHERE IS THE BOTTOM LINE,THE ULTIMATE FRONTIER FOR CUTTING COST FOR A LOW-COST?????
OPEN QUESTION FOR ALL OF YOU.
SINCE WORKING FOR ONE OF THEM,EVERY YEAR THE MAIN CONCERN IS FOR NEW PLANS TO SAVE COST.
RECENTLY THEY STARTED TO THINK ABOUT COST REDUCTION FOR SOME OF US HAVING FUNCTION WITHIN THE COMPANY,LIKE INSTRUCTORS,AMONG OTHER GREAT AND GENIUS IDEAS.HOW MUCH THIS REPRESENTS IN THE TOTAL DIRECT COSTS FOR A COMPANY?UP TO WHERE WE HAVE TO UNDERSTAND THE WHOLE ECONOMICAL SITUATION?
IT SHOULD BE SOMEWHERE SOMEONE SAYING "NOW STOP"...PILOT UNIONS,COMPANY PILOT ASSOCIATION?
BEST REGARDS....

[Stu Bigzorst]

William,

FIRSTLY YOU MAY WANT TO TURN YOUR CAPSLOCK off. People will interpret this as being angry.

I think the answer is simple. If the cost cutting means you have to change your ways, then tough. If it means a reduction of safety to an unacceptable level, or it is such a daft idea from a "laptop manager" that it in fact increases cost, then you should start shouting (and re-instate the capslock) "NOW STOP".

It's not easy, is it*

* insert "!" or "?" as appropriate...

[Final 3 Greens]

The airline industry is relatively new and thus naive in business terms.

There are three generic business strategies:

1) differentiate and take advantage of profitable niche markets

2) focus on your speciality

3) be a low cost provider

If you are #1, then you will strive to be innovative, to show value add beyond your competitors

If you are #2, then size and economies of scale are the drivers

If you are #3, then you end up in an endless round of cost cutting, since your profits come from being cheaper than your competition

Southwest fall into category #1, but the European lookalikes worship the false god that is #3, because they have not truly bought into the Southwest model, which embraces far more than cost alone.

This winter will see a number of casualties - personally, I believe that the sooner many of the false god worshippers go bust, the better.

They do very little to enhance the lives of FQTVs like me, who basically keep the airlines in business, because we are neither price driven, nor fickle in our use of airlines.

Ultimately, market forces will prevail.

[William73]

Hi thanks for sharing with me your opinion.
First,i am not angry at all...but just wondering how far we can go in cutting the cost to offer cheap prices....