Besides the BFS we are not doing anything. There is 4 BFS on the new planes. Hardly meaningful. None of the other charges were adjusted as of now. They are entertaining the idea.
Thats why I said, limited. I think you forgot that choosing ANY seat on the plane is not uniform
. That is a big piece of the pie. So yes, that is something else other than BFS. However, you're also right that there is always new opportunity..although some of it hindered by logistics.
This is a complex formula. But it is to be noted that on one side of the equation the fixed fees take 40% of the total. That is almost 1/2 the equation on that side! Very significant. There is a golden number for segment length. I don't know what it is. But we were told in initial that long legs are not where the business is at. And that was when we had only a handful of fees. I.e. the much publicized carry on fee came years later.
You are trying to disprove someone who does know the exact numbers with hypothetical numbers that you are guessing
. The operational factors of operating longer stage lengths are well worth it when you factor in the revenue. Look, im not saying that NK is a transcon airline, just that dreams of whacking at the stage length does not make sense. + The catch-22 is that in a high oil environment you run into major capacity controls and you sacrifice short stages for longer ones and now in a lower oil environment you think about competition from other modes of transport that suddenly are legitimized again (namely, cars).
At Ryan Air average segment length is 1.2 hours, at Easy it is 1.6 or so. That could be in part because Europe is not nearly the size of the USA.
Europe has a massively different socio-economic situation along with a geography factor which makes it mostly incomparable to American realities. Might as well compare the stage lengths of Azul, Tiger or Air Asia in that case..
I can't say I know. But I strongly feel shorter legs are the way to go. Unfortunately.
Free country my friend! But I'd tell you that youd be the only strategist at any US carrier with that overall belief.
I am not proposing anything. The company stated that we are going to increase frequencies in 2015. Connecting the dots. Not my idea.
Maybe that was a misunderstanding on my part, I thought you were alluding to running massive amount of frequencies. Going from 3x weekly to Daily or from Daily to Double Daily isnt what I was talking about. I was talking about running frequencies to such a level where we actually compete heavily on it. Never say never though
They have issues because they had this explosive growth that was partially fueled by the hedges. They gained significant market share during those times which was awesome for them. Now they will have to trim and/or shift things around. After they fine tune it, they will find their spot. They are certainly not short of talents over there.
The issue isnt nor was it growth. If growth is what you want to go with, then let me point you to carriers that have pre-SWA and post-SWA grown like a mushroom and not exhibited these deficiencies. Namely because they are a product of a certain mentality which is why you still cannot depart at 11:02 or 15:59...thats just a fun fact heh