NO MORE HIDING PLACES : LOW-FARE AIRLINES HAVE ACHIEVED CRITICAL MASS IN MANY PARTS OF THE WORLD

Low-cost scheduled carriers are gaining popularity, accounting now for 11% of the world's fleet. Southwest is still the leader, with a 40% difference between the highest and lowest fares, several times narrower than network airlines' differential. Charter operations could offer the next big source of low-cost scheduled flights. The overall proliferation is creating hot competition in some markets, such as Oakland, CA, where long-dominant Southwest is competing on some routes with JetBlue. For new entries to survive long-term, they must choose their markets carefully and avoid over-expansion. As stage lengths increase, so do economies of scale. Now some 20% of Southwest's routes are more than 750 miles long. The new carriers are also able to demand special concessions from potential bases.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00022543
• Corporate Authors:

  Penton Media

  1300 E 9th Street
  Cleveland, OH  United States  44114-1503
• Authors:
  • Feldman, J M
• Publication Date: 2002-8

Language

• English

Media Info

• Features: Photos; Tables;
• Pagination: p. 27-28
• Serial:
  • ATW: Air Transport World
  • Volume: 39
  • Issue Number: 8
  • Publisher: Penton Media
  • ISSN: 0002-2543

Subject/Index Terms

• TRT Terms: Airlines; City pairs; Competition; Costs; Discount fares; Hub and spoke systems; Low cost carriers
• Subject Areas: Aviation; Finance;

Filing Info

• Accession Number: 00931399
• Record Type: Publication
• Source Agency: UC Berkeley Transportation Library
• Files: BTRIS, TRIS
• Created Date: Oct 1 2002 12:00AM