tag:blogger.com,1999:blog-2892693522236149660.post4002275263553957337..comments2023-12-17T09:06:05.377-06:00Comments on elitepro-travel: New low cost airline to charge $9 for ticketseliteprohttp://www.blogger.com/profile/12418190934363691949noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2892693522236149660.post-1597265518950467632009-06-28T16:07:54.963-05:002009-06-28T16:07:54.963-05:00Dubai will also have a new carrier will be the six...Dubai will also have a new carrier will be the sixth in the region that is low-cost ... 10 Jun '09 Emirates sees moderate profits despite downturnAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2892693522236149660.post-33436350657192066832009-06-08T07:36:13.381-05:002009-06-08T07:36:13.381-05:00I wonder why these guys think they could be succes...I wonder why these guys think they could be successful where many have failed and only a handful have succeeded. The only possible reason is they think they can make a quick buck, especially now that fuel price has dropped from its all time high. They don't really know the cost of running an airline and the tremendous lost one must incur initially just to become profitable later on in time. Right now, even the legacy carriers have dropped their fares in order to keep the airline running in hopes that when things start picking up, they will continue to have the same passenger and load factors needed in order to stay competitive and profitable. Not everyone can run a LCC like SW and Jetblue, who incidentally have both posted losses this last quarter, jetBlue sold about a 19% stake to Luftansa, which has kept them alive in these trying tims. Although the loss incurred have not been as high as the legacy carriers, who incidentaly have relied on Business Class passengers and international passengers to bring in the bulk of their profit. With the economy in turmoil, its hard to fathom why they would choose this time and place to do it. Both New York Air and People Express did it back in the 80s and were initially successful, but because they had the backing of big investments. But once the losses started to mount, they soon realized that it was not feasible charging $19 fares from Newark to Florida. But, just like the 200 other airlines that have come and gone since deregulations, these new start up LCC will realize that the airline industry is not a cash pool as initially perceived. By the way, most of the traffic from NY to FL is based on folks who are using their frequent flier miles and unless these new carriers have these programs set up, they too will eventually perish unless they can provide something the other carriers cannot. Why Lansing? Michigan is probably the hardest hit state during this economic crisis we have fallen in to, so it baffles me as to why they would want to target this market, unless they plan on being the exodus carrier for the folks who have lost their jobs in Michigan and hoping for a new start in Florida. Good luck.<br /><br />Raul FAnonymousnoreply@blogger.com