Showing posts with label LCC. Show all posts
Showing posts with label LCC. Show all posts

Tuesday, April 30, 2013

Close shave for flyers on Nagpur flight

Low Cost Carriers (LCCs) normally maintain high levels of aircraft block hours and consequently, they have high levels of aircraft utilization. In fact, aircraft productivity (i.e., aircraft utilization) is a core operational issue for the business model of LCCs.
Having said so, it seems that the airport agents of Air Arabia in Nagpur have strict instructions about speedy boarding of passengers for outbound flights because they did so despite their awareness of the technical snag reported earlier at the touchdown of the very same aircraft at Nagpur Airport.
If airport gate agents will not allow the passengers to board the aircraft before getting the green-light from the cleaning crew, is it less important to board the passengers before receiving the go-ahead from the technical crew?
Will it make sense that speedy boarding of passengers is more important than the technical condition of the aircraft, and accordingly the safety of the passengers?

Date: 11 January 2011 commenting on http://timesofindia.indiatimes.com/

   

The consolidation of the LCC market

The airline business model does not congenitally have geographic restrictions on its own. Airline companies are free to choose their operational models as long as they can successfully operate. The so far success of Air Arabia in applying the LCC model does not necessarily mean that Sama can comparatively succeed applying the same model.

Sama’s management was fully aware of the applicable rules of the Saudi Civil Aviation from the beginning. Considering the fact that there was no significant change in those Saudi rules, Sama’s management team was gambling by mainly depending on the possibility of changing those rules.

What was the plan of Mr. Bruce Ashby, the CEO of Sama by searching for more finance? Was he planning to use the same management culture in utilizing the new funds? Was he simply planning to eventually run out of cash again?

Date: 30 August 2010 commenting on http://oussamastake.blogspot.com/

Sunday, May 30, 2010

Airline crisis with Saudi Arabia deepens

Protectionism is the keyword here.
“Open sky” policy minimizes governments’ intervention in international aviation.
The Egyptian Civil Aviation Authority is likely acting in favor of Egypt Air. Of course, it is an advantage for Egypt Air to operate away from the competition of low cost carriers (LCCs).
Bassel El-Sissy of the Egyptian Chamber of Travel Agencies is correct about his opinion that the Saudi-Egyptian crisis would affect Egyptians currently performing the Umrah.

Date: 08 April 2010 commenting on http://www.almasryalyoum.com/

Sunday, March 15, 2009

How an intelligent seating system can bring ancillary revenues, and is great for the airline brand

Definitely, I am not interested to be seated beside a mother traveling with her infant irrespective of the purpose of my trip (business or leisure).

Matching the passengers together is a good idea. Beyond the obvious criteria of grouping similar passengers together, is there a chance to seat single females beside non-married family-oriented males? The result might be happy passengers for both their flying experience as well as their success for building a family. Who knows? The marriage might also create another congenital loyal generation.


Generally, there is a potential for a system like Satisfly. Incorporating Satisfly could be one step more for those airlines which are keen about improving the flying experience of their passengers onboard. Thus, considering Satisfly is a long term investment and makes a lot of sense to be considered now as a way of keeping the existing customers. Of course, those airlines will not be using the system to generate ancillary revenue.


The issue may be different for low-cost carriers. Their passengers are paying for necessary services only: luggage, food, drinks, and eventually for using the toilet. They do not care that much about their flying neighbors who are sitting around them. Consequently, I can say that Satisfly has limited potential in LCC model especially during the current economic conditions.


Date: 15 March 2009
commenting on http://simpliflying.com
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AirAsia X: a brand with a huge potential, but remember, “you’re only buying the flying”

It is too early to predict the success or the failure of the low-cost long-haul model. The historical experience, represented by Oasis Hong Kong Airlines and Canadian Zoom Airlines, is not encouraging at all. Even, the 20% stake of AirAsiaX, which held by Richard Branson’s Virgin Group, adds more reservations to the whole idea. Moreover, it is widely known that LCC model does not work for flights over about 13 hours. However, the current economic situation might act to the advantage of AirAsiaX. Something else to be considered is the fact that Malaysian Airlines operates 2 daily Boeing 747 flights between Kuala Lumpur and London. That simply means that MH is making more than 700 daily seats available. It will NOT be a problem for AirAsiaX to acquire some of the existing MH customers who might be enticed by the price advantage of AirAsiaX.

I heard Tony Fernandes, the CEO of AirAsia talking about an important fact which might make things easy for AirAsiaX. He said that their cost is 0.03 US$ per ASK.
The support of feeder traffic provided by AirAsia as well as the existing traffic conditions between Kuala Lumpur and London are unique to AirAsiaX. Thus, the hoped-for success of AirAsiaX is not automatically applicable to any similar long-haul model.
 

Date: 12 March 2009 commenting on http://simpliflying.com