Speedbird wrote:
Where do you get your definition of a LCC?
G4G5
Low Cost Carrier.
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Just because an airline defines itself as a LCC doesn't always mean that it's prices are rock bottom. Albeit, low costs help an airline that offers low pricing to attract customers and sustain their operations, but the two are not joined at the hip, so to speak.
G4G5
It's all about marketing, you are an LCC. That's fine their is nothing wrong with that. In fact it appears to be the only group making a profit. But you are not a first class carrier. You are not Singapore or Cathy Pacific, or...... People are not looking at JB to define service, they come to JB for price. Again their is nothing wrong with that but don't ever try to tell me that people come to you for service first. It's price first, then service.
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For example, jetBlue maintains a yield premium in many of its markets even though its a LCC. You can't ignore the value aspect that I mentioned in my previous post.
G4G5
You need to define yeild premium for me? AA get's plenty of yeild premium for it's first class or the belly cargo. Try to remember that you are unique you are an LLC competing against full service carriers. Getting a few dollars a seat more for coach is not a yeild premium if your competition is selling out first and business class. Your yeild or margin is gained by your LOW COSTS not your service.
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Also, the passenger marketplace is too complex to lump all passengers into one category. Sure there are many passengers who buy their tickets in the manner you describe, but there are also a larger percentage of passengers who don't.
Your analogy of buying gas is a poor one.
G4G5
I'll clear it up for you. When I was a kid taking an airplane flight was something special. People paid a premium for service because the price was set by the CAB. Back then every gas station was full service, you couldn't pump your own gas if you tried. Heck you even had a relationship with the guy who pump your gas(I remember his name).
Then came deregulation airlines started to compete on price and over night cost became the key factor. Around the same time you started to see the gas stations begining to offer self serve pumps people were more concerned about saving a few dollars then getting the service.
I am not sure where you reside but in NY self service stations are all you see. Sure you can pay extra for someone to pump your gas but to put it bluntly, that for the rich folks. The same demographic that is willing to pay the additional price for a first/business ticket.
Funny thing is, today the LCC are the ones that most folks are choosing. Why because they are concerned about price. Just like the folks who pump their own gas. They are not looking for the service and the don't care where they buy their gas from. It price only. Just like an airline ticket to FL. Get it now.
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Maybe II'll bet that if had to spend four or five hours at a gas station every time you had to put gas in your tank, then somebody would come up with some nifty service features to attract you to their pumps. Since that isn't the case your example doesn't work.
G4G5
What am I missing here? TV alone is not going to cut it. That's obvious from Song. If it makes money and they can copy it they will. The only things they can't copy are service and price and the public is concerned about price. Not service.