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LCC Subsidaries


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#1
WSHNationals

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Do you think AM, US, NW, CO or possibly even Int'l Airlines like AC, BA, AF will set up LCC Subsidaries like UA's Ted and DL's Song? Or Do you think that Ted and Song will fail?

#2
tornado

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BA already tried a low cost subsidiary, Go, to try and compete with Easyjet!
Go wasn't successful, and was sold off. Easyjet later bought Go, and all aircraft and services were incorporated into the Easyjet network!

QANTAS has a subsidiary, Jetstar, but the name was already copywritten by a VA, and they had to go to court over it!

[Edited on 7/7/2005 by tornado]

#3
everotheleft

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As I recall ted comes about breakeven, they say united just runs it as a solem flipping of the bird to frontier, though don't quote me on that.

As to more airlines picking up that model: who knows? It seems like a solid model, with jetblue and southwest running the LC shtick pretty well, but I would imagine that if running that shtick as a subsidiary like DAL and UA do was that amazing other airlines would have already caught on.

#4
piercey

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AC


Ever here of Zip?

#5
WSHNationals

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oops yeah sorry....... and tango

#6
cufcskim

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LCC Subsidaries in the guises such as TED, GO, Song etc etc are not really LCC's.

All are subsidised by the main airline and all become rip offs when you're booking "long haul". eg, you book Heathrow to Somewhere in states with United that needs a secondary connection. You get United for the trans-atlantic sector but then get shoved on a TED "LoCo" on your second sector.........yet for some strange reason, you still end up paying the price of a full service.




Leagacy LoCo attempts are generally doomed to failure. Since they are subsidised by the main airline. Attempts to unhook the LoCo division from the apron strings is where it fall down, as the "LoCo" is still generally operating with mommy's fatter organisation and generous operating overheads.

[Edited on 7/26/2005 by cufcskim]




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