>>Anyway, I was discussing LCCs v Full Service Airlines. I don't really want
to get bogged down into arguing how great (or not) WN is. I don't have any
experience of them so I'd rather not comment.<<
Well, they are the epitome of a Low Fare carrier. They invented the
concept as we know it today. Their captains average nearly $150K per year,
about the same as what the other majors pay their 737 pilots. Their F/As are
paid about 18 per "trip", measured as pretty much the same number of miles
the plane takes to go an hour. B6 pays their pilots a bit less right now,
since they have not had anyone hit the highest seniority levels yet. Still,
Captains around 100K. Their F/As make 20 an hour.
I actually agree with you that DJ is making a lot of its money on
overhead, but I think they need to because their fares are still not low
enough. If you look at Low Fares that have a lot of competition, from both
hub and spokes and other low fares, they have lower fares and drive growth
through revenue. They have "halo" fares that draw people in like sports
cars, then they charge great business fares, which is where a lot of growth
is comming from. If you look at who is flying jetBlue, a lot are business
people who pay no more than $299 one way LGB-JFK or IAD. They still make a
profit because they serve chips and soda, and they own the company that
provides the TV technology. It is all about pulling people in and keeping
them with you