USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
Business Fare Collapse
ARLINGTON (theHub.com) - The collapse in business fares on domestic flights by network carriers from the third quarter of 2000 to the same period in 2003 was "a whopping $2.7 billion, or roughly $10.8 billion annually." That's the conclusion of an analysis conducted by Aviation Daily and Eclat Consulting. The study said that the drop in business revenue accounts for virtually all of the revenue loss the network carriers suffered over the period. The report said its findings support the "crystal clear" messages by the network carriers as they reported their first quarter financial results. "Costs must come down and business fares will never recover from the high point of 2000," the Daily stated. Jim Craun, a vice president at Eclat, said, "For those (airlines) that have restructured at least once, they face the difficult task of having to do it again because the revenue environment continually fails to meet plan."
Regards,
USA320Pilot
ARLINGTON (theHub.com) - The collapse in business fares on domestic flights by network carriers from the third quarter of 2000 to the same period in 2003 was "a whopping $2.7 billion, or roughly $10.8 billion annually." That's the conclusion of an analysis conducted by Aviation Daily and Eclat Consulting. The study said that the drop in business revenue accounts for virtually all of the revenue loss the network carriers suffered over the period. The report said its findings support the "crystal clear" messages by the network carriers as they reported their first quarter financial results. "Costs must come down and business fares will never recover from the high point of 2000," the Daily stated. Jim Craun, a vice president at Eclat, said, "For those (airlines) that have restructured at least once, they face the difficult task of having to do it again because the revenue environment continually fails to meet plan."
Regards,
USA320Pilot
