Originally Posted by
bluesky24
ULCC’s can grow in the US but will never match the market share of the big 3. The Legacy’s control all of the markets in all of the major US cities and therefore generate a revenue premium that the ULCC’s will never get. ULCC’s will also see their costs increase over time as their employee groups grow larger and negotiate better contracts and as their aircraft age. The problem is they compete on price and will struggle to increase revenue to match their increased costs. This is my opinion only
You don't think the Legacies costs won't increase over the years?
The big 3 are in negotiations now I don't think their pilots are going to accept pay cuts. The ULCCs only need to be proportionately cheaper.
Im pretty sure managers were saying the same thing about Southwest 35 years ago. The ULCCs are just taking Southwest's model to the next level of cheap...beyond the trailer park cheap.