Virgin Blue now has 30% (Geoff Dixon)
Join Date: May 2001
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Some interesting comments that are somewhat related on the following link:
http://www.washingtonpost.com/wp-dyn...2003Feb14.html
Up to a few years ago, management for many airlines figured the economy class pax were just bums on seats while the business and first class pax delivered the profits. The economy class helped pay the bills. While frequent flier miles and club access helped to try and differentiate the business and first class market and build loyalty, the differentiator in the economy class was almost solely price. The economy pax doesn't want to pay for the extras, which makes it very difficult to entice and retain the customer. These days, the traditional airlines in the US are in competition with the charter and bizjet operators for the lucrative business and first class pax, and the low cost airlines for the economy class pax and also many of the business pax. Their traditional market is rapidly changing as it is getting squeezed at both ends. It might not quite be the same in Australia yet, but it is coming. I'm sure Qantas management has noticed the trend. Ansett represented competition in the exact same market as Qantas and thoroughly botched it. Virgin Blue has punched in at a different market level and seems to be achieving gains that Qantas cannot effectively combat. United Airlines tried to expand to cover both the bizjet and low cost market, but it hasn't seemed to work so far for them.
I apologise if I'm doing the equivalent of preaching to the choir, but to scoff at Frank Borman's comments (which incidentally I didn't interpret as being 'anti-Qantas') is anathema to burying your head in the sand.
http://www.washingtonpost.com/wp-dyn...2003Feb14.html
Up to a few years ago, management for many airlines figured the economy class pax were just bums on seats while the business and first class pax delivered the profits. The economy class helped pay the bills. While frequent flier miles and club access helped to try and differentiate the business and first class market and build loyalty, the differentiator in the economy class was almost solely price. The economy pax doesn't want to pay for the extras, which makes it very difficult to entice and retain the customer. These days, the traditional airlines in the US are in competition with the charter and bizjet operators for the lucrative business and first class pax, and the low cost airlines for the economy class pax and also many of the business pax. Their traditional market is rapidly changing as it is getting squeezed at both ends. It might not quite be the same in Australia yet, but it is coming. I'm sure Qantas management has noticed the trend. Ansett represented competition in the exact same market as Qantas and thoroughly botched it. Virgin Blue has punched in at a different market level and seems to be achieving gains that Qantas cannot effectively combat. United Airlines tried to expand to cover both the bizjet and low cost market, but it hasn't seemed to work so far for them.
I apologise if I'm doing the equivalent of preaching to the choir, but to scoff at Frank Borman's comments (which incidentally I didn't interpret as being 'anti-Qantas') is anathema to burying your head in the sand.
Last edited by Lodown; 24th Feb 2003 at 23:00.
