if 5g hadn’t gone rogue and caused the coronavirus, it has the potential to reduce latency by a lot, which could make videoconferencing a lot better

Another potential problem with long-term Zoom meetings as opposed to in person. Zoom Fatigue.


https://www.google.com/amp/s/api.nat...y-that-happens


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LCCs will be losers in my opinion... First of all their customer base’s financials are being decimated right now. They won’t be flying anytime soon. The very few that will fly again will choose airlines like United as they will be as cheap for a while during the upcoming price wars, offer cleaner better spaces and will offer un matched route flexibility compared to that one flight on Frontier at midnight. Unfortunately due to this survival mode that everyone will be in I would expect massive concessions in pay structures.

I keep hearing statements like this, but they don't seem to take into account the people that were previously above the customer base that are now falling back into it and are suddenly more price conscious than they were a few months ago. I have no idea what the data suggests, but wouldn't it stand to reason that if most people are falling a few rungs down the financial ladder, there will be people falling down from above, down into the target demographic?

What all this fails to take into account is at least 2 of the big 3 (and SWA and Alaska) are too big and systemically important (to borrow the 2008 phrase) to fail. That distinction will start to have material consequences in terms of access to capital and government support/aid.

I think we’ve already begun to see it in how CARES is designed for the network hub/spoke system to shed flights while maintaining service. The point to point airlines were unsuccessful in getting the service requirements waived in a way that works for them. I suspect this bias will intensify as the economic crisis continues and deepens.

Legacy’s will lower prices to ULCC levels. They’ll sustain it as long as they have to. At that point there’s no reason to fly ULCC. Also as well, theres the business traveler. They need frequency.

Numerous theories exist that if the middle row is blocked off, the LCC's will not be able to compete with legacies, they will have 66% of previous max capacity, and running the same cheap fares. They will have to raise fares to legacy prices, but now they are not a "Low Cost" carrier anymore.

this is not a comment against LCC, just saying if the middle row is blocked/eliminated, it will be hard to compete.

sure, a guy in front, or in back, can recline his seat etc and get into your personal space.

my comments are from a pure "eliminate the middle seat PAX" point of view

Legacies started basic economy a few years ago to compete with the LCC. However, many people were still willing fly 4+ hrs on Spirit and Frontier and have to pay for a carry on with no Wifi, IFE and have to pay for snacks or drinks. The frequency didn’t have an impact on Spirit or Frontier before. You think the legacies can match the LCC’s price, while operating 4-5 flight a day on a particular flight while the LCC does 1-2 flights a day? You would think, after the legacies started basic economy few years ago, and had more frequency, how did Spirit and Frontier grew like the way they did?

Blocking the middle seat is like taking 1/3 the couches out of a frathouse basement. Still not where you want your 19yo daughter.

Airlines will need tools other than distancing

LCCs/ULCCS historically break even with a load factor in the high 60% range. Legacies break even around 75%. LCCs can just about break even in that "no middle seat" scenario, legacies can't unless they raise prices, which would give the LCCs an advantage. LCCs grew at a crazy rate after the great recession, and in the following 5 years had the highest profit margins in the industry while legacies shrank. 9/11 was a similar story.
Time will tell, I suppose.