Airlines are bad investments. Even JetBlue is trading at approx $13 bucks a share. It either split or took a major tumble from years past of $40-45 price range.
PineyBobI'm thinking you going to end up with a 3 tiered market.
One - the Wal-mart price only model. (SWA, USA 3000, Alligent, Frontier?)
Two - The Target value proposition model (US, Air Tran, Spirit)
Three - The Macy's Slightly upscale model (UA, NW, DL, AA)
Problem I see is to many at the top to command the revenue premium they would need to be profitable. If US & Air Tran can continue to grow and differiate themselves from SWA and stay close to the majors in amenities they should do very well. The growing pains however will not be pretty for customers as US tweeks the product to find the right blend.
My long term prediction is that Neeleman eventually admits that he should have left that 100 seat market to regional commuters and should have focused, instead, on his 156 seat markets.
The "extra" F/A at JetBlue is required because that position restocks the snack basket with cookies/ crackers/blue corn tortilla chips. The other F/a's speak fluent English, the basket packer is "Manual" LaborI never understood the 156 seat A-320 at B6. Unless you are running 96%+ load factors that extra FA (for being over 150 pax) seems contrary to running a low cost carrier.
I never understood the 156 seat A-320 at B6. Unless you are running 96%+ load factors that extra FA (for being over 150 pax) seems contrary to running a low cost carrier.