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How Budget Airlines Undercut the Majors (Spoiler: Infographics)

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Hodo
08/17/09

In reply to How Budget Airlines Undercut the Majors (Spoiler: Infographics)
That utilization # is waaaay off. It's worth way more than 3%. Think of it this way, if SWA is able to squeeze in 9 flights per day and AA only 8 (based on saving 20 minutes per turn-around, that's 160 minutes or 2.66 hours), SWA's fleet is 1/8th more productive in producing revenue (12.5%). When you add in seat density and no short "spoke" flights, this advantage gets multiplied.

Having worked in the aerospace industry the differences are very clear when you're a supplier to LCC versus traditional carriers: LCCs, while they care about the "purchase price" of the good or service they buy from you, they're also very concerned with how expensive it is to deploy / integrate your product or service (things like reliability, cycle time, etc.). Traditional carriers typically just want purchase price concessions and want to be on their way. SWA was always a tough customer, but you knew they'd find a way to get creative with you and get it done. AA was all about cost -- they'd hit you over the head repeatedly about price. It's like they had a script to read from.
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MrBlahBlah
08/17/09

In reply to How Budget Airlines Undercut the Majors (Spoiler: Infographics)
Also the types of flights that easyjet and ryanair operate are much different than the types of flights the big guys operate. anything over 2 hours on ryanair or easyjet will make you want to kill someone.
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balls187
08/17/09

@MrBlahBlah: I concur. They're a nice option to have, but if you have some slack in your budget, pay more for a "real" airline.

Of this article doesn't mention the 10 quid baggage fee, and like the 15kg limit per bag, which adds up quickly for anyone not doing a small weekend trip.
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OMG! Ponies!
08/17/09

In reply to How Budget Airlines Undercut the Majors (Spoiler: Infographics)
Having experienced AA yesterday, I don't know how expensive the in-flight entertainment is.

There was a nice fluff piece on McDonald's; I'd imagine that McDonald's paid AA to show it as part of the NBC/Universal in-flight entertainment.
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James
08/17/09

@OMG! Ponies!: It's not the production costs for the in-flight entertainment, it's the administration. They need a lot of people to ensure the right tapes (they still use tapes) make it on to each jet, every month. It adds minutes to the "turnaround" costs (SouthWest won't do anything that prevents them from changing a plane over in more than 20 minutes), and is one more thing for the flight attendant to deal with.

One of the big advantages to plane-enabled wifi is the ability for in-flight entertainment to be downloaded, TiVo style, onto a hard drive on the plane when it's at the gate instead of tranferrring physical media. Then all AA/UAL/etc has to do is sign a license agreement and the management is done by someone else.
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SacGamer
08/17/09

In reply to How Budget Airlines Undercut the Majors (Spoiler: Infographics)
"Low cost" as in still 100+ dollars? Call me when I can fly anywhere I want for like 50 bucks. Then it's "low cost".
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ripfire
08/17/09

@SacGamer: "Low cost" as in still 50+ dollars? Call me when I can fly anywhere I want for like 25 bucks. Then it's "low cost".
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OG_Phenix
08/17/09

@ripfire: Yes, and call me when it's economically viable to fly anybody anywhere for 25 bucks. Because apparently, jet engines will no longer be running on expensive fuel, but instead on magical fairy dust. And the metal frame will be replaced by wishes and dreams.

Wheeeee!

In all seriousness, if $50 is too expensive for you to fly somewhere, I think you're better off staying right where you are. It's safer for the rest of humanity.
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ripfire
08/17/09

@OG_Phenix: Whoooosh!
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Cordfucious of Tech Clan
08/17/09

@ripfire: why did you feed the troll
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hypnotoad
08/17/09

In reply to How Budget Airlines Undercut the Majors (Spoiler: Infographics)
What this infographic doesn't show is why you want all those things that cost more:

Less seats per aircraft = more legroom, less feeling like you're stuck in a sardine can for hours

Bigger airports = better connections to your final destination

Long hauls = do you really want to save a few bucks by flying NY to LA via Chicago, Atlanta and Dallas?

Travel agencies = some are good and come in handy if you need to reschedule due to weather, illness, etc

Different aircraft = appropriate size aircraft to fit the flight (= more destinations)

Better salaries = happier staff = better service (sometimes)

Just my 2 cents' worth...
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e-friend cuts you
08/17/09

@hypnotoad: SouthWest is the only airline I use. I'm paying them to take me somewhere, and if they can do it cheaper than the other guys by way of more seats, less entertainment, and no food, than fine. As long as I get to my destination. I can always listen to music, or - god forbid - talk to the person beside me.
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elementary
08/17/09

@e-friend: Dude, I don't care who you're visiting in Tampa, stop talking to me, I'm trying to sleep!
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hypnotoad
08/18/09

@e-friend: I don't know why SouthWest is even in this comparison: they only fly within the US. Apples and oranges. Spending a couple hours in mild discomfort is one thing; flying across the atlantic is another, which is why Lufthansa and British Airways charge more and are still in business.
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VenomIreland
08/17/09

In reply to How Budget Airlines Undercut the Majors (Spoiler: Infographics)
Aer Lyngus should be Aer Lingus.
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Nick
08/17/09

In reply to How Budget Airlines Undercut the Majors (Spoiler: Infographics)
don't forget that for a long while southwest had a static fuel cost and everyone else had to suffer that huge jump in oil prices. southwest is really one smart cookie.
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Bandit
08/17/09

@Nick: I love Nick: Yep, fuel is one of the highest cost items in the airline budget, but isn't reflected here. Also, paying the company's debt. A lot of legacy carriers pay a lot of interest on their huge debts and pension plans.
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