ULCC Model in the U.S.
#151
Line Holder
Joined APC: May 2016
Posts: 76
secondary airports with low operating costs.
A couple jurisdiction sued Ryanair over this semi legal racket and won. So Ryanair did kickstart its whole continent expansion with a lot of taxpayer money.
#152
ULCC Model in the U.S.
I think the 170/175 ERJ has more leg room then mainline on all carriers. I think it’s scope so they spread out the 69 and 76 seaters. I prefer deadheads on them over mainline.
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#153
Line Holder
Joined APC: Aug 2019
Posts: 67
Not only low but Ryanair got hundreds of millions of $$$ in subsidies from these local "counties" and playing the blackmailing game "you stop funding this route, we're out of here".
A couple jurisdiction sued Ryanair over this semi legal racket and won. So Ryanair did kickstart its whole continent expansion with a lot of taxpayer money.
A couple jurisdiction sued Ryanair over this semi legal racket and won. So Ryanair did kickstart its whole continent expansion with a lot of taxpayer money.
#154
Gets Weekends Off
Thread Starter
Joined APC: Jul 2008
Posts: 606
I wanted to bump this thread because the last post was pre-COVID. We’re in an interesting spot due to the industry shakeup. Nobody went unscathed due to the economic hit in 2020, but the ULCCs seem to be least impacted. Moreover, they look like they’re going to be the biggest winners in the recovery. The next few years are going to be interesting ...
#155
I wanted to bump this thread because the last post was pre-COVID. We’re in an interesting spot due to the industry shakeup. Nobody went unscathed due to the economic hit in 2020, but the ULCCs seem to be least impacted. Moreover, they look like they’re going to be the biggest winners in the recovery. The next few years are going to be interesting ...
#156
Covfefe
Joined APC: Jun 2015
Posts: 3,001
I think you are right. They were growing nearly 15% per year before COVID and they (and SWA) are going to steal a lead on the legacies in recovery. Excepting the one nominal legacy (Alaska) the decline of business and international flying is really driving up legacy CASM. Competing on fares for the visiting friends and family crowd isn’t what the legacy business model was designed for and it’s difficult to think that they’ll do well at is. With CASM ex-fuel down around 7 cents (and their own good fuel efficiency) the ULCCs and SWA ought to hold their own against the Big Three fairly well.
#157
When you have widebodies that are underutilized but you are still paying debt service on them your overall CASM has got to go up. Although it would be much worse if Uncle Sam wasn’t covering personnel costs. And with interest rates starting to go up, each tranche of bonds that has to be refinanced at the higher rate will drive it even higher. In the interim, you are paying to park those depreciating assets.
#158
Gets Weekends Off
Joined APC: Jul 2015
Position: ce560
Posts: 231
This was the big “test” people were waiting to see, how the ULCCs fared in a down economy.
The full outcome still remains to be seen, but it appears that they (predominantly NK and F9) not only survived but thrived.
The full outcome still remains to be seen, but it appears that they (predominantly NK and F9) not only survived but thrived.
#159
Gets Weekends Off
Joined APC: Feb 2007
Position: Airplanes
Posts: 1,375
Had it not been for CARES/CARES2/PAP it's quite possible that Spirit would have been the only airline that wouldn't have furloughed.
#160
That/It/Thang
Joined APC: Aug 2020
Posts: 2,848
Thanks Gov’ment for that cheese
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