With the world starting to deregulate aviation small companies are adopting new models to compete with the larger airlines. Frantz Yvelin, CEO of La Compagnie, made a business model that turns the whole aircraft into business class. The cost for a seat is around $2,000 instead of the $5,000 to $11,000 the competitors have. With this model businesses are more likely to fly with La Compagnie because the business class is much cheaper. Another model is the Ultra low cost carriers (ULCC) model. This model uses cut rates for seats however, the passenger must pay for anything extra. This model drawls in customers because of the low prices and even by paying the extra fees, the overall trip is cheaper. But what do the businesses look like?
La Compagnie, who uses the business class model, uses a fleet of Boeing 757-200‘s and the maintenance is outsourced and done by Icelandair Technica. La Compagnie uses full business class planes and has 19 rows of 74 seats. La Compagnie is based at Paris Charles De Gaulle Terminal and operates between Paris and Los Angeles. The ULCC model is used by Spirit. Spirit flies to over 50 destinations with main bases in Detroit and Fort Lauderdale. Spirit’s fleet contains A319‘s, A320‘s, and A321‘s. Spirit has one of the youngest fleets and operates in the U.S, Latin America, and Caribbean. But which model is better?
Both models offer their own benefits. With Yvelin’s, their company is able to attract business men who are flying on their companies money. With ULCC, the average citizen is able to fly and even choose the perks they want to pay for. I believe the most successful model will be the ULCC. The ULCC model is open to a larger majority of the public. The low cost of ticket will lure in more people and with the option to pick the perks to fly with, people are able to save more money. While the ULCC does not offer the best business class seats, or any, the cost makes them able to compete better.
I believe that with all these new models there with be a separation between the airlines, one for the wealthy and one for the average person. I believe that the expensive airlines will be more associated with safety and the cheaper ones with cutting corners. If the expensive airlines start losing profit margins then they might start cutting down on the quality of pilots, by cutting pay or even outsourcing. The expensive airlines might be able to get away with it since public perception is the ticket costs more so it must be more safe? I believe that the low cost airlines will do what ever it takes to cut costs and might remove one pilot from the cockpit and/or even charge to use the bathroom.
https://www.lacompagnie.com
http://www.spirit.com
I also said that the low cost model would be more successful but the reason was them having the lowest price. You make a good point that it is open to a larger majority of the public. That’s another reason it will be more successful. Also, La Compagnie does not have a fleet of 757s. They actually only have one. That’s obviously going to have to change for them to thrive.
ReplyDeleteThe ULCC model is definitely a hot topic in the industry. As of now, it is has not really expanded into overseas travel but someday definitely could. One of the major transitions for people is that yes the tickets are dirt cheap, but you will now have to pay for items that were once included in that ticket price such as food and beverage, carry-on luggage and checking bags. A meal may not be included in long haul travel and airlines could take advantage of this and charge a premium price for meals.
ReplyDeleteI definitely see ULCC cutting more and more. While there is a chance that they may eventually charge for bathroom use (I hope not!), thank goodness for regulations that require two pilots!
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