It's a NEW airline... how else are we going to find out if a market pair works without at least trying it. We have 44 jet's that will be utilized for the entire operation... and that includes finding new prospective market pairs. Nothing wrong with that.
In the business world... "Direct" means a lot. You can either spend several extra hours out of your day commuting out of your way to a hub and connecting or mis-connecting on your flights to get to your destination or back home... or... you can fly direct. Time is a premium... time = money for business or better QOL at home. We are betting folks would prefer to have that extra time for the same price fare.
The only thing similar to our business plan and FlyI is that we started our own brand. That's it. FlyI did it 100% no holds barred, come hell or high water it will have to work!... We are just using a small part of our fleet to get a feel for it while having the ability to fine tune it as we go along.
FlyI went into the same markets as their old "mother ship" and they were set up as a Hub/spoke structure. Not a good idea... a fare war with a major carrier in their own backyard who happened to be going to the SAME destinations... isn't something they could handle well for a long time along with oil prices rising astronimically back then.
We are not setting up as an LCC. We will be offering competitive rates with the Major's in the markets we are in. We don't want to pi** in anybody's backyard. The difference is... we will be charging the same price... for a "direct" flight. A flight with good meals, dollar beers, blankets, pillows, XM radio, comfy seats, no middle-row, gate side bag pick-up, and the knowledge you aren't being hearded into a packed 737 like cattle.
FlyI was waiting for the airbus... we are not. We fully intend to run this operation with the equipment we have. That will keep our costs down significantly... adding a fleet type will practically throw our cost structure out the window at this time and we know that.
Also... remember this... we are only utilizing 16% of out fleet to do this. Sure it's a gamble... but it's not a life or death gamble for XJT. There are other options for the jets besides parking them in the desert too... Overseas flying... leasing them out to other carriers... other RFP's... etc. You never know what will "pop" up (Jet Blue). Not all the options keep all the pilots flying... but they can still be profitable for the company.
Overall... I "get" what you are trying to say... but you are trying to say it by comparing us to an airline that there is really no comparison to. Take a look at FLYi's old route and cost structure then take a look at ours and you'll see that. But the analysts don't see that and they get everyone on the "Look what happened to FlyI!!" bandwagon. Lot's of these same analysts said that Delta would have been absorbed by another carrier... USAir and Northwest wouldn't be around after bankruptcy... and none of them predicted what America West did...
Well... what's wrong with "Look what happened to Southwest..."
