Originally Posted by
VacancyBid
The current examples we have of breeze and avelo don’t point to that being true. Or frontier.
basic economy looks like it won that battle.
there isn’t a ready supply of new (or used) low cost airframes. There isn’t a particular excess of low cost pilot labor. There isn’t tons of unused capacity at desirable airports. I don’t see economic inefficiency to exploit
Yeah I think basic economy won for the time being. If all else is roughly equal, economy of scale matters. For operational efficiency as well as mileage points.
Also in this industry established incumbents have huge structural advantages.
Pendulum will swing eventually, labor costs will rise and then some black swan will make that unsustainable and a startup or two will make some inroads.
Allegiant, Breeze, etc might be more niche business models, as opposed to startups that have any potential to grow into the traditional legacy/SWA spaces.