Understanding what is happening to the LCCs:
 

An excellent explanation using hard stats and figures explaining what is happening to the low cost carrier market in the US from the "Moden MBA" YouTube Channel:


https://www.youtube.com/watch?v=rslcr774JXM

k





filler filler

lowest paid pilot groups. No profit sharing. Worst employee benefits. They don’t own anything. They make money on lease backs. Everyone is a contractor. They do everything cheap cheap cheap. One fleet airplane. High turnover keeping wages low.

The fact that they can’t make money really is bewildering. Only an MBA could explain it. (Sarcasm).

Uhh, you do realize that Southwest is one of the airlines the video discusses in depth? Also the LCCs (especially Spirit) had some of the best QOL in the industry for quite some time until recently. Pilot turnover wasn't really all that bad until the last hiring boom. Almost none of what you say is true other than single fleet.

don’t lump SW into your nonsense. And you’re right. I didn’t watch the video. Nor do I care to.

So you're just talking out of your [mod edit] then?

[mod edit] maybe you tell me where my argument was wrong instead. I gave you a list of problems. Tell me what’s not true

Just talking out of my butt, I'd guess the ULCC problems are due in large part to the legacies adopting basic economy, super saver, etc fares to compete with ULCC. I'm sure the ULCC managers gooned some stuff up too, that's pretty par for the course for almost all airline managers.

Even SWA (not a ULCC) is moving to a more legacy-ish paradigm (assigned seats).

This is precisely what has caused their problems. Why would a customer book on NK when AA has the same-price ticket in the back of their plane, except also a much more robust network, especially when something goes south? It was only a matter of time before everyone caught on to the game and started competing directly against the ULCC.

Agreed with it all. One question that makes me wonder why, why does it work fairly well in Europe with RyanAir/EastJet?