Geebung, Queensland Superthread

The friendliest place on the web for anyone that follows U2.
If you have answers, please help by responding to the unanswered posts.
Status
Not open for further replies.
Largely. But airlines like Ryanair and Southwest have proven it's entirely possible to make money in an all-economy, low fares layout.

Huh. The way some people in the rail community talk, you'd think air travel is an endless stream of profits and there's no way rail could ever viably compete with air's profitability on routes like Wellington-Auckland or Sydney-Brisbane.
 
Huh. The way some people in the rail community talk, you'd think air travel is an endless stream of profits and there's no way rail could ever viably compete with air's profitability on routes like Wellington-Auckland or Sydney-Brisbane.

Well, what you quoted is a pretty extreme example. You're still usually making money on economy route, so long as you're shifting the seats for the breakeven price.

Of course, as the price of oil rises planes become less profitable across the board and the yield, business class or otherwise begins to suffer.

Short routes like Sydney-Brisbane and Wellington-Auckland don't matter for business class because you're only in the seat for so long, so most travellers either on company money or paying for themselves are more likely to choose the cheaper option or preferred airline.
 
I suppose i should add that most routes where you'll be getting any decent business class yield aren't really competitors to rail routes - think Sydney-Perth, Auckland-LAX-London etc.

Right. Well then, that changes things a bit. The context of the discussion was why state governments had been quite happy to run their own railways but never established their own airlines. The point of the person claiming that economy is a huge lossmaker offset by high yield busines travel was that since most intrastate travel is not business (e.g. Dubbo to Sydney or Mildura to Melbourne is not comparable to Sydney to Melbourne), running an airline would simply be an exercise in losing heaps of money on economy class travellers with not enough business travellers to offset it.
 
Sooooo we're talking planes tonight huh?


I might have to go watch my satellite porn and get my warm front going don't you think Ian?? :giggle:
 
Right. Well then, that changes things a bit. The context of the discussion was why state governments had been quite happy to run their own railways but never established their own airlines. The point of the person claiming that economy is a huge lossmaker offset by high yield busines travel was that since most intrastate travel is not business (e.g. Dubbo to Sydney or Mildura to Melbourne is not comparable to Sydney to Melbourne), running an airline would simply be an exercise in losing heaps of money on economy class travellers with not enough business travellers to offset it.

Sounds right. In this case the private sector has it in hand - and there is a reason why you see airlines like Virgin Blue pushing so hard for business travellers. Otherwise you have to do it like Southwest by promising little but delivering well and Ryanair who offer really low fares but make all of their money charging for extras.
 
Goodnight, folks. :wave:

I should stop being lazy and make dinner or do uni work.
 
Status
Not open for further replies.
Back
Top Bottom