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Why are commuter flights so expensive?



 
 
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  #34  
Old November 29th 04, 05:07 PM
Newps
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Colin W Kingsbury wrote:



Second is the issue of cost structure. No matter how you look at it, running
an airline is a hellish business. It's as capital-intensive as real estate,
only your main assets are always depreciating. Operating costs are
astounding, and not easily adjusted. Pilots, mechanics, FAs, gate leases,
etc. all add up very quickly, and it takes years to adjust the formula. So
newcomers will always have the advantage because they built their business
models around last year's conditions, and not the last decade's. But come
ten years from now those newcomers could be in just as bad shape.


Look at Southwest. They are doing it right. All the people really want
is a seat at the cheapest possible rate. We don't need your fancy clubs
and we certainly don't care about boarding the plane 5 minutes before
everybody else. Just get to my destination when you say you will and be
friendly about it.

Interestingly for us, the future is in some ways headed in our
direction. Regional jets are replacing not only the Saab 340s and Dash 8s,
but MD-80s and DC-9s as well. Many of the new airlines have all-RJ fleets
from the ground up.



That's because an airline pilot just isn't worth $175K per year.
Period. Get a jumpseat ride in an RJ and you'll see a 7 year can fly
one. When the computer voice says 10 feet pull the power and the nose
up and you land. There's nothing to do anymore. Which is good, that's
what makes it safe.
 




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