Low-cost airlines taking long-haul routes

by Jarkko on November 10, 2009

in Airlines, Aviation

Ryanair Boeing 737-800 in Berlin-Schönefeld, n...

Image via Wikipedia

When will low cost airlines attack to the long haul destinations? That is one tricky question but maybe not much of a mumbo-jumbo because that day will most likely come, sooner or later.

For example, Ryanair said few months ago that British Airways should be aware that they will take more and more long distance flights away from BA. They have even talked to plane manufacturers to build planes for their long-haul needs.

According to Mr. O’Leary, only problem will be the pricing in those routes. 1$ seat to the back of the plane but there should also be an expensive seats for the business travelers.  That being said, there might be some difficulties in companies like KLM, BA or even in Finnair. Finnair’s only real income comes from Asian traffic and that will be the most wanted direction along the American big airports. Apart from these three airlines that seems to the real target for the Ryanair, there is a huge opportunity to all low cost airlines for starting a price war. Is it profitable, we sure will see it in a very near future.

How will it happen then? Well, it is not going to be easy as it is in EU or US markets. Cheap prices means less money and therefore they also need to concentrate serving cargo companies, business travelers, rich people. Meaning that if they get a share from those markets, there will be more and more bankruptcy ready airlines. People and cargo still needs to move from place to place and a question is, can they handle all that? I say no.

 

But, BA, KLM, Finnair… Beware, times are changing, very soon!

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{ 1 comment… read it below or add one }

Kouba November 10, 2009 at 20:43

Valuable thoughts and advices. I read your topic with great interest.

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