Re: An interesting bit of...COLUSION (sic?)

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We've had this discussion before. While intuitive, the "major" to =
low-cost
comparison is not apples-to-apples. To say that the major airlines are
losing money simply because they do not operate high frequency, =
one-class
aircraft is just wrong. And operating high frequency, one-class aircraft =
is
not a sure path to success, as Vanguard, National, Midway, and others =
can
attest (yes, these operated two-class aircraft, but not to a degree that
makes it statistically relevant).

-----Original Message-----
From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of
Alireza Alivandivafa
Sent: Wednesday, May 07, 2003 10:18 PM
To: AIRLINE@xxxxxxxxxxxxxxxxx
Subject: Re: An interesting bit of...COLUSION (sic?)


And the mainlines are going bankrupt while low fares make money.  RJs =
really
don't allow people to bypass hubs as they normally fly to the hubs from
smaller markets (SBA-LAX or DEN, FAT-DEN...).  They just fly people into
hubs so they can bypass security (maybe).  The low fares use far bigger
planes than RJs (around the PAX capacity of what UA and AA fly on 762s, =
more
on jetBlue), out of smaller markets and/or airports, and fly with =
frequency.
They make money because they take into account economies of scale and =
are
not so greedy with margins that they cannot sell tix.

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