Originally Posted by
mainlineAF
There’s nothing revolutionary/disruptive about ULCCs. All they do is pay all of their employees below market rates. Not exactly a new idea.
But they currently have newer fleets requiring less maintenance and delivering better fuel economy to go along with those below market personnel costs, and even when they get market rates the younger pilot group will still - for at least another decade - be cheaper.
I didn’t claim they were revolutionary, I claimed it gave them an economic advantage, and it does.
Whether they are disruptive or not depends on whether their model attracts new business or steals market share from the Big Three. But they do seem to run leaner operations that might be expected to do better in a downturn.
Only time well tell.