airline seats being dumped en masse ?
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Join Date: May 2011
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airline seats being dumped en masse ?
it appears that the public aren't buying airline seats in any great number to anywhere at the moment.
Air Asia last week was doing $67 one way from Australia to ports beyond KUL like Langkawi, Penang etc. ($67 is basically the taxes)
Scoot dumping seats to SIN from $139 (OOL/SIN) in school holidays.
Even trans-tasman is being dumped.
eg. BNE/DUD/BNE in ski season for $330 return. (add $50 for checked baggage)
+ $1000 return fares to Europe.
All of these prices include taxes & charges.
& yes, for some of these deals there maybe only a dozen seats per flight, but it's not good to be continually selling loss leaders as public then thinks this is the benchmark & won't book until fares approach these sort of levels.
Talking to a few travel agents, they say they are doing lots of costings, but very few people are paying or in the case of a package, putting down a deposit. They both said that many people are waiting til it gets cheaper to book/pay.
Any cheaper & airlines will be closing down.
Air Asia last week was doing $67 one way from Australia to ports beyond KUL like Langkawi, Penang etc. ($67 is basically the taxes)
Scoot dumping seats to SIN from $139 (OOL/SIN) in school holidays.
Even trans-tasman is being dumped.
eg. BNE/DUD/BNE in ski season for $330 return. (add $50 for checked baggage)
+ $1000 return fares to Europe.
All of these prices include taxes & charges.
& yes, for some of these deals there maybe only a dozen seats per flight, but it's not good to be continually selling loss leaders as public then thinks this is the benchmark & won't book until fares approach these sort of levels.
Talking to a few travel agents, they say they are doing lots of costings, but very few people are paying or in the case of a package, putting down a deposit. They both said that many people are waiting til it gets cheaper to book/pay.
Any cheaper & airlines will be closing down.
Hawaii prices have tanked also, Jetstar offers $500-$600 return flights most weeks on sales.
Got an email last week from AirNZ offering Australia-USA for $900 return.
Great time to Explore the world!
Got an email last week from AirNZ offering Australia-USA for $900 return.
Great time to Explore the world!
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apart from residential real estate in cities, there seems to be no consumer confidence out there at present.
Seems to be a race to the bottom, where everyone wants things cheaper, but everyone also likes to be paid. Doesn't work.
Everyone seems to be trying to give stuff away & the opposition seems to think they need to do the same.
Seems to be a race to the bottom, where everyone wants things cheaper, but everyone also likes to be paid. Doesn't work.
Everyone seems to be trying to give stuff away & the opposition seems to think they need to do the same.
Last edited by BNEA320; 24th Mar 2015 at 01:23.
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somewhat at odds with airnz then?
apparently keeping the 767's for now. a mate on them tells me they're keeping them for a while yet.
they wouldnt be doing that if they didnt have work for them.
apparently keeping the 767's for now. a mate on them tells me they're keeping them for a while yet.
they wouldnt be doing that if they didnt have work for them.
if there was any money that route, qf would have kept the 330 on it?
The aircraft were redeployed so that Joyce's could take part in a pissing contest with Borghetti.
We all know how that went
Can you back this up with data, or is this your opinion?
The inference being they were chasing greater returns despite AKL-LAX-AKL being in the black.
In general, is it not true that four departures per day will yield more profit than two? Especially four segments of four hours compared to a couple of 11 hour sectors with higher fuel costs per mile/km/parsec?
That said, I have no doubt that the 330 made money on the route. When QF abandoned AKL they also jettisoned a host of loyal FF members. Those customers will only be won back, if ever, at high cost. It was an idealogical (as opposed to just plain logical) move. In 45 years doing this I have seen some pretty dumb management moves. Robbing International to engage in a domestic pissing contest was one of the most pig-ignorant.
Every time that I fly a half load PER-MEL I wonder who is playing at The Met. Or The Gardens. Or if I should renew my subscription to "The New Yorker"?
Getting back to the initial premise of a silent seat sale: Many anecdotal indicators* show that the spending brakes have been hit hard. I have two car dealers ringing daily about specific new cars that I saw five weeks ago. That can't be good. This morning the line up at security was exactly one person long. Usually it is fifty or so.
*Some people collect stamps. I collect bad news. Judge accordingly.
That said, I have no doubt that the 330 made money on the route. When QF abandoned AKL they also jettisoned a host of loyal FF members. Those customers will only be won back, if ever, at high cost. It was an idealogical (as opposed to just plain logical) move. In 45 years doing this I have seen some pretty dumb management moves. Robbing International to engage in a domestic pissing contest was one of the most pig-ignorant.
Every time that I fly a half load PER-MEL I wonder who is playing at The Met. Or The Gardens. Or if I should renew my subscription to "The New Yorker"?
Getting back to the initial premise of a silent seat sale: Many anecdotal indicators* show that the spending brakes have been hit hard. I have two car dealers ringing daily about specific new cars that I saw five weeks ago. That can't be good. This morning the line up at security was exactly one person long. Usually it is fifty or so.
*Some people collect stamps. I collect bad news. Judge accordingly.
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inbox this am, full of more incredible airfare deals. Yes they may only be 5 seats per flight at loss leader fares, (eg. $67 one way to KUL & beyond inc all taxes) but the stream is constant.
All govts & the media, need to be talking up the economy & boost consumer confidence FAST !!!
All govts & the media, need to be talking up the economy & boost consumer confidence FAST !!!
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Profit = Revenue - Cost
If we accept this and that there is limited ability to differentiate to add significantly enhanced revenue, the only option is to reduce cost.
If we want to maintain our wage levels, then we had better be pretty jolly good (read efficient and productive) at what we do.
To do this, we need the best, most reliable processes and should be constantly trying to change them to make them better. Do we do this or are we stuck in the "we've always done it this way" mentality.
Our job security is up to us - we, the every day employees need to be the leaders and all drive the cost down.
If we accept this and that there is limited ability to differentiate to add significantly enhanced revenue, the only option is to reduce cost.
If we want to maintain our wage levels, then we had better be pretty jolly good (read efficient and productive) at what we do.
To do this, we need the best, most reliable processes and should be constantly trying to change them to make them better. Do we do this or are we stuck in the "we've always done it this way" mentality.
Our job security is up to us - we, the every day employees need to be the leaders and all drive the cost down.
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Whilst driving the lowest cASK possible, is absolutely critical to margin improvement, it is also important to explore new revenue opportunities. This is where, and why, ancillary revenue, is so fundamentally important to the success or most low cost airlines.
Driving up fares does little. The LCC demographic is price sensitive. There is no yield play within cabins.
You should encourage your cabin crew behind the door, to actively pursue inflight revenue as aggressively as possible. In Australia, this is not front-of-mind, but is in other countries, and operators.
Driving up fares does little. The LCC demographic is price sensitive. There is no yield play within cabins.
You should encourage your cabin crew behind the door, to actively pursue inflight revenue as aggressively as possible. In Australia, this is not front-of-mind, but is in other countries, and operators.
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somewhat at odds with airnz then?
apparently keeping the 767's for now. a mate on them tells me they're keeping them for a while yet.
they wouldnt be doing that if they didnt have work for them.
apparently keeping the 767's for now. a mate on them tells me they're keeping them for a while yet.
they wouldnt be doing that if they didnt have work for them.
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JQ now dumping OOL-SYD-MEL/CHC flights in ski season from $191 to $235 return !!!
Take out taxes & they are not netting much on these flights.
Where will it end ?
A race to the bottom.
Things must be rough out there for airlines catering for the leisure traveller & for those airlines, who's regular pax are deciding whether to have a flying holiday or not ?
Take out taxes & they are not netting much on these flights.
Where will it end ?
A race to the bottom.
Things must be rough out there for airlines catering for the leisure traveller & for those airlines, who's regular pax are deciding whether to have a flying holiday or not ?
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A race to the bottom.
Then additional extraction of ancillary revenue e.g. hotels, transfers, food and beverage, baggage etc.
Normal practice this far out by all airlines.