Comments on: Regional Airlines “New Strategies” for Survival, Will it work? http://www.planeconversations.com/2009/12/15/regional-airlines-new-strategies-for-survival-will-it-work/ Mon, 06 Sep 2010 18:11:17 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Doug Cate http://www.planeconversations.com/2009/12/15/regional-airlines-new-strategies-for-survival-will-it-work/comment-page-1/#comment-253 Doug Cate Tue, 15 Dec 2009 16:58:37 +0000 http://www.planeconversations.com/?p=1664#comment-253 Allen, great article on viewing the customer's basic aviation need within the framework of a company startup. The business model broke because it didn't satisfy completely the need for the customer to travel comfortably and quickly. People will pay for value, or at least perceived value if it is within their ability to do so. I agree with Clint, this is a golden oportunity for GA. Allen, great article on viewing the customer’s basic aviation need within the framework of a company startup. The business model broke because it didn’t satisfy completely the need for the customer to travel comfortably and quickly. People will pay for value, or at least perceived value if it is within their ability to do so.

I agree with Clint, this is a golden oportunity for GA.

]]> By: Clint White http://www.planeconversations.com/2009/12/15/regional-airlines-new-strategies-for-survival-will-it-work/comment-page-1/#comment-2346 Clint White Tue, 15 Dec 2009 14:43:18 +0000 http://www.planeconversations.com/?p=1664#comment-2346 <span class="topsy_trackback_comment"><span class="topsy_twitter_username"><span class="topsy_trackback_content">Regional Airlines “New Strategies” for Survival, Will it work? | Plane Conversations http://bit.ly/85LVrp</span></span> Regional Airlines “New Strategies” for Survival, Will it work? | Plane Conversations http://bit.ly/85LVrp

]]> By: Clint White http://www.planeconversations.com/2009/12/15/regional-airlines-new-strategies-for-survival-will-it-work/comment-page-1/#comment-252 Clint White Tue, 15 Dec 2009 14:16:22 +0000 http://www.planeconversations.com/?p=1664#comment-252 The fact is that the airline business model had been broken for years before the current economic turmoil. Degregulation was supposed to make the airlines safer, cheaper and more efficent. While no one will argue that flying is safer and cheaper than it was in the 1970s. Its efficency (except in a few cases) has gotten WORSE not better. In addition the cost model defies explanation. How can a ticket from NY to LA be the same price (or lower) now that it was in 1978? How many items have DECREASED in price in the last 30 years? The endless price wars in the industry is perfect example of shooting yourself in the foot. The hub-and-spoke system has lead to overcrowding at the largest airports (and the delays that the overcrowding causes) while 1000s of smaller airports are underserved or not served at all. The "race to the bottom" in cost savings has created an industry where even the simpliest of pleasures now costs you money. (Even charging for coffee). Many complain that the glamour of airline travel has been replaced by a "bus with wings" mentaility. Some are even talking about charging for BATHROOMS! Perhaps even STAND UP SEATING? Where does it end? All this turmoil in the indsutry is a golden opportunity for general aviation. The time savings and efficency of boarding your own chartered airplane is invaluable in a 24/7 business world. The ability to actually RELAX in the airplane or conduct business is priceless. (Not to mention actually getting there on time) GA also can serve 1000s of airports the airlines simply ignore and compete profitably for all aircraft travelers. From "Air Taxi" service on the lower end to Charter, fractional and of course aircraft ownership on the higher end. The convienence that General Aviation provides is LIGHT YEARS ahead of the airline business model and is flexible enough to survive the changes in the industry. It is up to the GA industry to take advantage of this opportunity NOW for its future growth. The fact is that the airline business model had been broken for years before the current economic turmoil. Degregulation was supposed to make the airlines safer, cheaper and more efficent. While no one will argue that flying is safer and cheaper than it was in the 1970s. Its efficency (except in a few cases) has gotten WORSE not better. In addition the cost model defies explanation. How can a ticket from NY to LA be the same price (or lower) now that it was in 1978? How many items have DECREASED in price in the last 30 years? The endless price wars in the industry is perfect example of shooting yourself in the foot.

The hub-and-spoke system has lead to overcrowding at the largest airports (and the delays that the overcrowding causes) while 1000s of smaller airports are underserved or not served at all. The “race to the bottom” in cost savings has created an industry where even the simpliest of pleasures now costs you money. (Even charging for coffee). Many complain that the glamour of airline travel has been replaced by a “bus with wings” mentaility. Some are even talking about charging for BATHROOMS! Perhaps even STAND UP SEATING? Where does it end?

All this turmoil in the indsutry is a golden opportunity for general aviation. The time savings and efficency of boarding your own chartered airplane is invaluable in a 24/7 business world. The ability to actually RELAX in the airplane or conduct business is priceless. (Not to mention actually getting there on time) GA also can serve 1000s of airports the airlines simply ignore and compete profitably for all aircraft travelers. From “Air Taxi” service on the lower end to Charter, fractional and of course aircraft ownership on the higher end. The convienence that General Aviation provides is LIGHT YEARS ahead of the airline business model and is flexible enough to survive the changes in the industry.

It is up to the GA industry to take advantage of this opportunity NOW for its future growth.

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