USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
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Q. "How soon before low-cost airlines become the major carriers?
A. Two or three years. That's when we're likely to see Southwest, and possibly JetBlue and AirTran, assume spots in the upper echelon. Which airlines are they likely to replace? US Airways, United and Delta.
Labor and other woes make them the shakiest of the current majors. Lack of pricing power is the airline industry's biggest problem.
That's a plus for budget-conscious travelers but an albatross for the carriers. Strong customer resistance and fierce competition will hold down airfares even as airlines see fuel and other costs mount."
A. Two or three years. That's when we're likely to see Southwest, and possibly JetBlue and AirTran, assume spots in the upper echelon. Which airlines are they likely to replace? US Airways, United and Delta.
Labor and other woes make them the shakiest of the current majors. Lack of pricing power is the airline industry's biggest problem.
That's a plus for budget-conscious travelers but an albatross for the carriers. Strong customer resistance and fierce competition will hold down airfares even as airlines see fuel and other costs mount."