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:
skylinesmecher
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…
AerCap orders 100 A320neo-family jets in Frontier-linked transaction
Irish-based leasing giant AerCap is ordering another 100 Airbus A320neo-family jets, delivery of which will…
Air Astana co-founder BAE Systems exits carrier after nearly 25 years
UK aerospace firm BAE Systems is selling its remaining interest in Kazakh operator Air Astana…
UK to buy additional Thales Martlet missiles as counter-drone weapon demand spikes
With demand for air-launched counter-drone capability having spiked due to the conflict in the Middle…
Thales eyes expansion of contrail-avoidance trials after Amelia test success
Thales is eyeing a large-scale trial of a new contrail-avoidance system to validate the solution…
European airline leaders call for regulators to stop taking aviation progress for granted | News
European airline leaders are calling on the region’s regulators to take steps to support the…
Warsaw-based Draco Aircraft pitches HyperSTOL design to Polish military and NATO operators
Warsaw-based Draco Aircraft has entered into partnership with two Polish military institutions to pitch a…
P&WC details hybridisation plan for PW127 engine that could power ATR Evo
Pratt & Whitney Canada parent RTX has provided more details on the advanced hybrid-electric PW127…
Anduril’s UK boss eyes growth opportunities as autonomous system demand takes off
Anduril Industries is eyeing significant further growth in the UK, as the company’s in-country presence…
United Aircraft passenger airliner prototypes to undergo natural icing tests
United Aircraft is to undertake natural icing tests on three new aircraft models, with prototypes…
Thales to supply new communications system for Pilatus PC-7 trainer operator
Thales has been chosen to provide a radio management system for use by an undisclosed…