Originally Posted by
sobo
Depending on the rebound, this seems like a prime time for the legacy airlines to snuff out competition. Both ULCCs will tell you they are designed to compete in tough economic conditions, but I don’t think we’ve seen a situation where demand falls AND the price of fuel falls. CASM is going to drop like a rock at the legacy airlines, while having a war chest of cash and the ability to park paid off aircraft. You combine that with the retirements effectively taking care of workforce reduction, the ULCC’s may actually be in trouble.
Being at an ULCC, I am a little more than alarmed at this point.
hopefully all will be alright for all. Nobody saw this one coming.