Popodum a écrit:Not sure economy class only could generate enough profit to sustain and develop a company.
Ryannair for instance currently struggles with ticket fares (low to start booking, and quite high when threshold is reached). Besides the company also have some trouble with staff, underpaid and overused.
Having an adaptable/flexible business/first could balance revenues positively.
I guess aircraft size is today more a problem for airlines, A380 vs B787.
Although Emirates will certainly complete their A380 order to Airbus, they decided to go for the 787-10 (April next year).
KernAir a écrit:Popodum a écrit:Not sure economy class only could generate enough profit to sustain and develop a company.
Ryannair for instance currently struggles with ticket fares (low to start booking, and quite high when threshold is reached). Besides the company also have some trouble with staff, underpaid and overused.
Having an adaptable/flexible business/first could balance revenues positively.
I guess aircraft size is today more a problem for airlines, A380 vs B787.
Although Emirates will certainly complete their A380 order to Airbus, they decided to go for the 787-10 (April next year).
Ryanair is currently hitting profit margins after tax of 10%, while successful airlines are typically in the 1-3% bracket. I would use a lot of words to describe Ryanair, but "struggling" isn't one of them.
Popodum a écrit:
You're right. Profits remain high and low fares will still answer today customers' demand.
I was more thinking about struggling with personnel, as O'Leary always looks for more term profits.
He puts pressure on staff to reduce overall cost.
Don't forget he tried to set a sit-stand concept with Boeing and Airbus to increase the seats. Fortunately EASA and FAA responded negatively.
Well, we'll see if his strategy is right.
KernAir a écrit:I can understand the argument. An airline that focuses purely on economy passengers will be better suited to their needs than an airline that focuses on a little bit of everything.
That said, I don't think "economy" or "first class" will disappear for certain airlines. The definitions and offerings will change but the basics will remain the same. In fact we've already seen that happen with 'Business' making way for 'Premium Economy' (which is effectively the Business of old) and so forth.
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