tim..... wrote:
>
>>"Bob Slay" wrote in message
>>news:1168074414.001906.98500@51g2000cwl.googlegroups.com...
>>http://business.timesonline.co.uk/article/0,,9077-2533411,00.html
>
>>The Times January 06, 2007
>>
>>AirAsia's chief takes no-frills approach to 13-hour flights
>>David Robertson
>>British travellers willing to do without inflight entertainment and
>>free food and drink will soon be able to buy flights to Asia for as
>>little as £60 return.
>
> The problem with this is that the LCC approach doesn't scale
> well.
>
> When you start with a 200 quid fare, cutting out the 'free' food
> and gifts saves a noticable amount, but when you start with
> a 1000 quid fare it doesn't.
£1000 possibly isn't a realistic comparison. You can fly the same route for
around half the price, albeit not always directly.
I assume the prices quoted do not include taxes, charges etc.
> The rest of the savings have to come from elsewhere, better
> fleet utalisation, poorer staff benefits etc.
I assume Asian labour is much cheaper than European labour.
Buying and maintaining an A320 with no extras is bound to be much cheaper
than doing the same with an A340.
Are airport fees much less for smaller planes? I assume that cheaper
regional airports can be used also.
> With 2 hour flight times, quick turnarounds means that you
> can get an extra flight per day from each plane, but with an
> 8 hour flight time what can you possibly do except one return
> trip per plane?
>
> And international rules mean that your outbound staff can't
> fly the next return flight. Staff who go home every night might
> put up with poor terms and conditions, but ones who have
> to stay overnight at the far every other day will soon get
> fed up with the 10 Euro pn hell hole that they are booked in
> and look for a new employer.
One would think the same about Ryanair staff, but amazingly they stay.
> And then there's the often overlooked fact that the Ryanair
> model relies upon some people paying the 200 quid fare
> that their competitors charge. Whilst I have (once) paid this
> when I really had to fly *today* and it was still the best deal
> around, most people's trans-continental travel requirements
> are a little bit more flexible.
You might find that this is what the premium economy fares are for. In my
line of business, short notice flights from Europe to the rest of the world
aren't that uncommon.
> I wish them well, but will be suprised if it is something
> which becomes the norm
I personally think that it is possible if they adopt Ryanair type procedures
and a "who gives a f*** about passengers" attitude. I certainly wouldn't
fancy flying with them though!!
> tim
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