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LCC model challenges - IATA

Old 04-22-2020, 07:43 AM
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https://paxex.aero/2020/04/lcc-colla...stancing-iata/


It is easy for airlines today to talk about offering “social distancing” accommodation on board. Blocking middle seats or even sitting passengers every other row is not a problem when load factors hover in the mid-teens, occasionally peaking at 30% for an especially busy flight. But as lock-downs are lifted and demand (slowly) returns the planes will become more crowded. If social distancing demands remain in place at that time IATA executives believe the LCC market could collapse as a financially unsustainable endeavor.
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Old 04-22-2020, 07:47 AM
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You just loooveeeeee to wish ill on all LCC. News flash, blocking the middle seat will crush the legacies too
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Old 04-22-2020, 07:50 AM
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So the insinuation is that legacy carriers can survive on 66% LF? Puh-lease. They have worse margins and CASM than any ULCC/LCC. Horrible article.
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Old 04-22-2020, 08:09 AM
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Originally Posted by senecacaptain View Post
that is probably complete opposite of what would happen. If you can only fill 1/2 of all first class seats how will legacies survive? See I can throw our hypothetical bull crap as well.
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Old 04-22-2020, 08:19 AM
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Originally Posted by SAABoroowski View Post
You just loooveeeeee to wish ill on all LCC. News flash, blocking the middle seat will crush the legacies too
Seneca posting more doom and gloom BS? Shocked!

Recently started using the ignore feature here. It’s been nice. Pretty sure his sister account is 5and20.
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Old 04-22-2020, 08:24 AM
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People will still rush the the front, and stand less than a foot apart once the seat belt signs comes off.
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Old 04-22-2020, 08:26 AM
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Originally Posted by SaintNick View Post
that is probably complete opposite of what would happen. If you can only fill 1/2 of all first class seats how will legacies survive? See I can throw our hypothetical bull crap as well.
This is the first thing that came to my mind as well. Half of the heavy earning first class seats will be blocked off. Revenue from steerage class is just the “beer money” for the airline.

The article also argues that the U/LCCs will have to raise base fares and ancillary fees to make up for the lost load factor, insinuating that fares will be close to/equal to that of non-U/LCCs and passengers will gravitate that direction. If 66% of all seats on all aircraft were blocked off, ALL airlines will have to increase ticket costs, not just the U/LCCs. The value for the cost conscious traveler will still be found in the U/LCC model.
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Old 04-22-2020, 08:32 AM
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Originally Posted by CAirBear View Post
Seneca posting more doom and gloom BS? Shocked!

Recently started using the ignore feature here. It’s been nice. Pretty sure his sister account is 5and20.
Folks, my apologies. I was just posting news articles that I felt may be worthy of reading. I apologize
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Old 04-22-2020, 09:06 AM
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They act like this is going to be a permanent thing.....May take a while but people will travel again, even in the middle seat!
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Old 04-22-2020, 09:38 AM
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I don't know who's going to be more impacted by this - full service or LCC carriers. I do, however, know that it is going to hurt all airlines for a very long time. Full service vs LCC won't matter much.
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