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The future of airlines
nipper
post Posted: Jul 27 2017, 06:30 PM
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Yield Management... (they call it). As per earlier post on this thread and being well aware of the changes, I recently 'bought' an extra 3 inches of legs room on an upcoming OS flight. Can cost a bit more $100+ per flight (hope that's not per leg!); can buy same on domestic and a bit cheaper, if you are NBL material, though for short distances, its hardly worth it.

With Dreamliner and other models, there are long haul flights that mean that Perth-London non-stop is a reality; and improved fuel efficiency is bringing extended versions of the venerable 737 into trans Atlantic trips. Although the mantra of 2 engines good, 4 engines better holds, for me. And hubs still work unless there is sufficient and sustainable point-to-point demand.

And other changes: Asia, and China especially, is where the growth is. The Middle Eastern outfits, with their subsidies and sand storms and inconvenient truths, may have peaked.

CAPA, (https://centreforaviation.com/insights/anal...database-356495) has come out with a list of Asian airport developments underway or planned:

- Singapore's Changi - terminal 4 planned
- South Korea - Incheon 2nd terminal
- Hong Kong - more reclamation for a 3rd runway
- Beijing - a new $12.9 billion airport due to open in 2019
- Bangkok - 3rd runway for Suvarnabhumi
- Guangzhou Baiyun International Airport — less than 150 kms from Hong Kong — turning into China Southern's primary transfer hub
- Shenzhen - even closer to HK - upgrading airports, for larger international carriers, not just regional
- and who can forget Badgery's Creek

https://www.bloomberg.com/news/articles/201...is-under-threat



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"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blueice
post Posted: Sep 17 2010, 09:17 AM
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Long time between drinks for this topic - any way here is a good one for the CATTTLE CLASS passengers. Now atleast you can be close enough to whisper sweet things in the ear of the front passenger............pack those doggies in...........LOL

A NEW design for economy class airline seating gives a new meaning to the term "cattle class" - as passengers would sit on saddle-type seats, even closer to the person in front than now.

http://www.theaustralian.com.au/business/n...f-1225925165883


 
balance
post Posted: Nov 25 2008, 03:28 PM
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QUOTE (swuzzlebubble @ Tuesday 25/11/08 01:15pm)

I hope those functionally disabled by being tall get to fly business class at economy prices to gain the extra leg room.
It seems that being obese where some if not most can do something about their condition have an advantage over those born with something out of the ordinary and can do nothing about it.

maybe now we will get to weigh people along with their bags to gauge an airfare. devilsmiley.gif After all, freight is priced largely by weight and it does take a given amount of fuel/energy to transport a given weight.

Interesting decision and will spark debate.



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swuzzlebubble
post Posted: Nov 25 2008, 12:15 PM
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Obese have the right to two seats: court
November 25, 2008 - 11:27AM

Obese people have the right to two seats for the price of one on flights within Canada, the Supreme Court of Canada ruled on Thursday.

The high court declined to hear an appeal by Canadian airlines of a decision by the Canadian Transportation Agency that people who are "functionally disabled by obesity" deserve to have two seats for one fare.

The airlines had lost an appeal at the Federal Court of Appeal in May and had sought to launch a fresh appeal at the Supreme Court. The court's decision not to hear a new appeal means the one-person-one-fare policy stands.

The appeal had been launched by Air Canada, Air Canada Jazz and WestJet.

Obese have the right to two seats

 
balance
post Posted: Jul 24 2008, 02:15 PM
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as usual geoff dixon (the worlds happiest executive) concentrates on the negatives, what he and the press dont push hard enough is the fact this crisis is an opportunity for the well run cashed up oufits to really put it up the weaker players kill them off take them over or just watch them rot.
Qantas SIA Emirates Etihad etc will do ok.



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Day Trader: Lowest form of life in the known universe.
Shorter: Can limbo under a day trader.
Investor: Salt of the Earth.Sits to the right of God (Warren Buffet)
Share prices are only ever manipulated down.
Paper losses are not really losses.
Chat site posters always know better & know more than anyone about anything.
I'm 29.
The cheque is in the mail.
 
alonso
post Posted: Jul 24 2008, 10:43 AM
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In reply to: The Pro on Thursday 24/07/08 03:22am

Thanks for that Pro . .you might be interested in this nice little summary:

http://au.biz.yahoo.com/080724/2/1ufpw.html



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The Pro
post Posted: Jul 24 2008, 03:22 AM
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Airline index blasts up 75% over last week
Declining oil prices spurs week-long rally across the sector


http://www.marketwatch.com/news/story/airl...13CEA3209BE8%7D



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alonso
post Posted: Jul 22 2008, 03:13 PM
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Geoff Dixon's global predictions:

http://au.biz.yahoo.com/080722/31/1ucfz.html



--------------------
"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 
alonso
post Posted: Jul 20 2008, 02:17 PM
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Low cost fares are over, low cost becomes "reasonable" fare . .fewer planes, more bums on seats . .move towards passengers who can afford to pay . . I wasn't wrong, it'll be back to the 5000 pound seat on a flying boat

http://business.smh.com.au/business/qantas...80718-3hhq.html



--------------------
"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 
MBA
post Posted: Jul 18 2008, 04:52 PM
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Also an interesting article written by Stephen Bartholomeusz - "No future for Inept airlines" -
http://www.businessspectator.com.au/bs.nsf...erts&loc=center

Well written article that presents a good picture of the issues the airlines will face for at least the next year or two. An intersting comment is made that if the price of oil icreases by US$1, it affects the airline industry by $1.6billion - on both sides.

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The Australian aviation industry has moved into survival mode. With airline collapses now occurring with increasing frequency around the globe, both Qantas and Virgin Blue are taking dramatic steps to preserve sufficient cash to ride out the oil-price induced turbulence.

Qantas has today announced substantial job cuts – 1500 jobs have gone, plans for 1200 new jobs have been scrapped and a fifth of its management and head office staff will disappear – and has slashed planned capacity growth from 8 per cent to nil, retiring 22 of its older aircraft in the process.

Virgin Blue’s Brett Godfrey told Business Spectator that he would reduce capacity by another three per cent, on top of a six per cent reduction announced only last month, and said that if oil prices remained at current levels it would be an ‘’incredible achievement’’ for any airline, including the Australian carriers, just to break even this financial year.

Over the next couple of years, he said making a profit would become secondary to preserving cash.

The reality for the industry is that no one can make money if oil prices remain where they are. The recent forecast by the International Air Transport Association that the industry would lose up to $US6.1 billion this year now looks wildly optimistic. A movement of $US1 in the price of oil per barrel adds or subtracts $US1.6 billion from the global industry’s earnings.

For the two major Australian domestic carriers, the strong Australian dollar and some fuel hedging provides some protection from the forces buffeting the global industry. The near-duopoly characteristics of the domestic industry also gives them some pricing power and the ability to both increases fares and introduce charges for baggage. Tiger’s limited existing capacity means that its impact on the market so far has been relatively modest. Separately, all three carriers are relatively efficient by international standards.

With the economy softening the outlook has deteriorated dramatically. Hence the decision to carve into capacity, which had previously been expected to increase by as much as 20 per cent this year.

For both big carriers, removing older capacity will produce more fuel-efficient fleets while redeploying capacity onto more profitable routes will preserve and optimise profitability, or at very least cash generation. Both have very strong and liquid balance sheets.

For Qantas, while the near term outlook for its international business will be challenging at best and quite bleak at its worst, the stress oil prices are imposing on international carriers far less efficient and flexible than itself may, in the long-term, be quite a positive development.

Geoff Dixon has railed for years about the lack of commerciality in the global industry and the distortions created by motivations other than profit. There are also substantial impediments – given the level of involvement by national governments in the sector – to the rationalisation of a sector that has been sub-economic virtually throughout its history.

If oil prices don’t fall back substantially, the industry landscape may be radically reshaped by the torrents of red ink now pouring through it – as Godfrey said, the conditions confronting the industry globally are dramatically worse than in the aftermath of September 11 or during the SARS crisis – which would eventually create a more rational landscape for the better-managed carriers that survive.

The good news for Qantas today is that it has at least settled what was a disruptive, damaging, destabilising and, given the conditions, dangerous dispute with its maintenance engineers.

Gifting Virgin Blue business travellers in today’s environment was a luxury Qantas couldn’t afford – although one would have thought the Qantas unions themselves should have understood the tsunami-like implications of sustained high oil prices for the industry. Commonsense has, belatedly, prevailed.

 
 


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