Air Lease chief Steven Udvar-Hazy has contrasted US legacy carriers’ competitive approach to low-cost airlines with the situation in Europe.
Speaking during an Aviation Club event in London on 18 September, Udvar-Hazy stated that European budget airlines are “now the high-volume, high-frequency operators”, particularly in the leisure sector.
“In the US, however, the large US carriers have learned to price a certain percentage of their seats in the back of the airplane to be at – or below – the cost of operators like Spirit, Frontier, Allegiant, Sun Country and others,” he says.
“The big guys have learned how to become smarter, to compete with low-cost carriers.”
Udvar-Hazy says this illustrates a “very interesting contrast” with Europe where the general operating costs of major intercontinental airlines are “still very high”.
This means there is still a “significant” pricing differentiation between the “big guys” and the likes of EasyJet, Vueling, Wizz Air – which, he says, is “really helping the low-cost carriers”.
Udvar-Hazy’s remarked followed the decision by Spirit Airlines to file for US Chapter 11 protection for the second time in less than a year.
United Airlines chief Scott Kirby also stated earlier this month that he believed the ultra low-cost carrier business model had “failed”.
Source link
Air Lease chief Steven Udvar-Hazy has contrasted US legacy carriers’ competitive approach to low-cost airlines with the situation in Europe.
Speaking during an Aviation Club event in London on 18 September, Udvar-Hazy stated that European budget airlines are “now the high-volume, high-frequency operators”, particularly in the leisure sector.
“In the US, however, the large US carriers have learned to price a certain percentage of their seats in the back of the airplane to be at – or below – the cost of operators like Spirit, Frontier, Allegiant, Sun Country and others,” he says.
“The big guys have learned how to become smarter, to compete with low-cost carriers.”
Udvar-Hazy says this illustrates a “very interesting contrast” with Europe where the general operating costs of major intercontinental airlines are “still very high”.
This means there is still a “significant” pricing differentiation between the “big guys” and the likes of EasyJet, Vueling, Wizz Air – which, he says, is “really helping the low-cost carriers”.
Udvar-Hazy’s remarked followed the decision by Spirit Airlines to file for US Chapter 11 protection for the second time in less than a year.
United Airlines chief Scott Kirby also stated earlier this month that he believed the ultra low-cost carrier business model had “failed”.
Source link
Share This:
admin
Plan the perfect NYC Memorial Day weekend
Pack only what you need and avoid overpacking to streamline the check-in and security screening…
LA’s worst traffic areas and how to avoid them
Consider using alternative routes, such as Sepulveda Boulevard, which runs parallel to the 405 in…
Safran tasks new UK centre with electric and composite research for future single-aisle
French aerospace firm Safran is internationalising its technology research operation by setting up a centre…
Leonardo Helicopters’ Proteus technology demonstrator poised to make first flight for UK Royal Navy
Leonardo Helicopters has edged a step closer to flying its AW09-based Proteus technology demonstrator for…
Brazil test fires MBDA Meteor missiles from Gripen E fighter in major milestone
Brazil has notched a major milestone in its campaign to phase in Saab’s latest Gripen…
Aeroflot Group discloses acquisition of 747 and 737 freighters
Aeroflot Group has disclosed that eight aircraft – including freighters – have been introduced to…
Airbus cuts full-year delivery target by 30 aircraft
Airbus has cut its full-year delivery target to 790 commercial aircraft, down from the original…
Hi Fly claims Antarctic first with A330 follow-up to A340 landing
Portuguese wet-lease specialist Hi Fly has flown an Airbus A330-300 to Antarctica, claiming a first…
Austria to field 12-strong Leonardo M-346FA fleet from 2028 under $1.75 billion deal
Austria has finalised a roughly €1.5 billion ($1.75 billion) deal that will lead to its…
Avincis and DHC partner on CL-series waterbomber support
Aerial services provider Avincis is to collaborate with De Havilland Canada (DHC) on a series…
MBDA Meteor missile integration nears flight-test phase with Lockheed Martin’s stealthy F-35A
MBDA’s Meteor beyond-visual-range air-to-air missile has moved a step closer to commencing flight trials with…
Jekta hydrogen-electric amphibian aircraft scale model testing begins January 2024
Swiss start-up Jekta plans next month to begin flight testing a scale model of the…