You know what the world really needs right now? Another tran-Atlantic ULCC start-up based in Ireland!

Who keeps financing this garbage?

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I'd love to see some kind of study for why this kind of thing never seems to work out. The LCC/ULCC model seems to work great overall, but for some reason it seems like when it gets applied to the long haul model it just never works out.
 
JordanD said:
I'd love to see some kind of study for why this kind of thing never seems to work out. The LCC/ULCC model seems to work great overall, but for some reason it seems like when it gets applied to the long haul model it just never works out.
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Except it does work quite often.

I brought Icelandair into two airports - TPA and RDU. TPA already had a somewhat low cost product in Lufthansa's CItyline A340 flights (think regional airline operating long haul, widebody international). Icelandair did pretty well until I also brought Norwegian in, who took a lot of their London traffic with them.

I brought Icelandair into RDU last year (flights started this past summer) and it's their top performing new launch market. With AA LHR and DL CDG the only traditional options, Icelandair can still charge a premium over some of their other markets and come in under those two. I've looked myself and Icelandair isn't that cheap - mostly because their flights are full. So full that they keep extending their season.

It's important to note that most U.S. airports give these carriers two years of fee waivers and a bunch of marketing support. So for the first two years, they're operating free of destination airport charges, with free marketing as well. After two years the route is either profitable and it stays, or it isn't and it goes.
 
JordanD said:
I'd love to see some kind of study for why this kind of thing never seems to work out. The LCC/ULCC model seems to work great overall, but for some reason it seems like when it gets applied to the long haul model it just never works out.
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CASM, low seat price spread over long distances and costs for fuel/aircraft the same as the big guys who have premium cabins and connecting feed. It does not work and any competition or economic storm kills it. The proof is that zero long haul low costs exist right now.
 
Skåning said:
CASM, low seat price spread over long distances and costs for fuel/aircraft the same as the big guys who have premium cabins and connecting feed. It does not work and any competition or economic storm kills it. The proof is that zero long haul low costs exist right now.
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frontier be like “hold my beer, watch this!”
 
Avalon781ML said:
Hearing JetBlue on the tracks at 290-310 is enough to make my head spin.
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Apparently they can reach CDG and possibly? MAD. AMS soon too? Not gonna lie, a little jelly.

It still makes me go arooo with Southwest on the pacific tracks to Hawaii.
 
Skåning said:
Apparently they can reach CDG and possibly? MAD. AMS soon too? Not gonna lie, a little jelly.

It still makes me go arooo with Southwest on the pacific tracks to Hawaii.
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They'll do AMS but it better be on time with slots as tight as theirs.

Didn't (Continental) do Berlin with the 57s from Newark?
 
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