Clouds On Horizon For Lcc's

[novaqt]

Check out the article below:

Future doesn't look so rosey for LCC's

FEATURE-Clouds on the horizon for low-cost airlines
Sun Sep 26, 2004 02:11 PM ET
By Jui Chakravorty

NEW YORK, Sept 26 (Reuters) - As larger U.S. airlines suffer growing losses, low-cost carriers, previously thought to be invincible, are not far behind, industry experts say, due to soaring jet fuel prices, low air fares and more competition.

http://www.reuters.com/newsArticle.jhtml?t...storyID=6334378

MOD NOTE: PLEASE DO NOT COPY AND PASTE ENTIRE ARTICLES....YOUR ORIGINAL POST EVEN INCLUDED THE REUTERS COPYRIGHT....

 

[North by Northwest]

Nothing (we) the industry didn't already know. It's just a matter of time. It is remarkable how dumb some of these "industry experts" really are. Their level of rehash is just amazing. I'm no "expert" but let's see, an industry that has senior and junior levels of pay, lots of new a/c leases to be paid, and record oil prices. Based on that information I conclude that as the work force of LCC become more senior and unionized, along with the record price of oil, they will start to feel the same pain as the Legacy carriers. Whew...l feel like an expert reporter now.

 

[C54Capt]

Yeah, what a brain sureon that writer is. He could have said "Clouds on the Horizon" and attached any airline segment, and he would have been a genious.

 

[casual rat]

I still think that if fares were, like maybe, a wee more, like in the $5.00 to $10.00 range, then the industry losses wouldn't be as big....It might just offset the higher fuel prices, I dunno, call me crazy. I just don't make this stuff up.

 

[whlinder]

I think what is going to happen is that we will see what is going to happen to the U.S. airline industry play out in Europe first. Their LCC's have expanded even faster than U.S. ones, and the consolidation of major carriers has begun (AF/KL). All the "analysts" and CEOs of LCCs over there expect a fallout to occur soon. It looks like whatever shakes out over there will be repeated here, it just might take longer.