Originally Posted by
Lab Rat
More observations:
Let us also reflect on what the culture was like 20 years ago and what it is like today.
Brand Loyalty
People used to fly a particular airline because they were loyal to the brand and the service that carrier provided. It was not uncommon for people to pay more to fly on one carrier versus another.
Business Models
Fax machines and color copiers used to be the big advances in the office. Prior to emails and teleconferencing, face-to-face business meetings were more common than not. The airlines could and would charge more for the last minute business flyer, and both accepted that fact as a cost of doing business. Just write it off as a business expense.
Nowadays, everybody is very cost sensitive and not as brand loyal as in years past. Add into the equation the internet which will show you the cheapest tickets to the penny, and the industry is now operating in a very competitive environment in which expenses are high and revenues are barely enough.
Other questions are. How profitable is an RJ on point to point? Is it primarily a hub feed aircraft ? There was a regional that broke away from UAL and tried to go it on its own while getting larger aircraft (Airbus?) and couldn't transition fast enough and went under in a very short period.
Given the cost of aircraft, the price of fuel, and the cost of employees are we headed back to a period of time that not everyone and his brother flew anytime they wanted to go somewhere? In the old days flying was not for the everyday guy.
Will the real first class passengers return from the fractionals to the mainline carriers, coach used to pay for the airplane and the profit was in first class, ( see carriers like Cathy Pacific)