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Articles from TravelPriceCompare.com: Low Cost Airliners Rule The Aviation Sector

Legacy carriers are losing their sheen and market share steadily to the low cost and no frill airliners. Way back in 2000, legacy carriers including US Airways, Delta Airlines, Continental Airways, Alaska and Northwest Airways had a consolidated market share of 90%. Today they have lost a major chunk of passenger load to AirTran, JetBlue and Southwest Airlines, the low cost carriers. They have been able to easily penetrate the market with low fares and low cost of setup. They have seen a gain in customer traction and favorability. With low cost of flying, vacations and enjoying with friends and family in other cities is a lot easier and cheaper. Legacy airliners are already under huge debts and lose the expenses union contracts make it impossible for them to become profitable at the price levels set by the low cost airliners.

US Airways has deferred delivery of 54 aircrafts. They were slated to receive the delivery in 2015 which is deferred to 2017. However, they are due to receive the delivery of 28 aircrafts during the course of 3 years. This strategy can help US airways to up the cash flows from $150 million to $450 million in the current fiscal. Considering the weakness of the aviation industry legacy carriers would have to stay in the cold waters till the time industry stabilizes.

Low cost carriers are giving tough time to legacy carriers. AirTran recently launched nonstop flights from Orlando to Des Moines and Iowa beginning in March, 2010. Southwest airlines have also been on expansion spree. It has planned to start 30 more schedules from the BWI airport to other destinations in US.

Milwaukee is another competition hit destination. It has been a hub for Midwest Airlines but the scene is changing off late as AirTran and SkyWest have been gaining a lot of traction and market share in the region. They have been able to offer a competitive pricing schedule.

 

read more: http://www.examiner.com/x-12585-Minneapolis-AirlinesAirport-Examiner%7Ey2009m11d30-Lowcost-carriers-market-share-continues-to-increase-plus-other-travel-news-you-can-use113009

 



NEWS from TravelPriceCompare.com

Hawaiian Airlines Plans New York Flights

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Delta Airlines sets request on 2 Sao Paulo nonstop flights

Delta Air Lines requested from federal government to set up nonstop flights between Detroit Metro Airport and Sao Paulo, Brazil, its first ever. Delta said that would support the airport's position as a major international gateway... READ MORE

Air Canada Touches Newer Skies

Air Canada is all set to fly to seven new markets in US including Memphis. The airliner will be commencing its maiden flight to Memphis beginning May 17. Six other US markets where Air Canada would be stepping in include - Orange County, Calif.; San Diego; Portland, Oregon; Cincinnati; Portland, Maine; and Syracuse, New York .The Canadian flag carrier will connect Memphis International airport with Toronto’s Pearson International airport... READ MORE

read other news from TravelPriceCompare.com here


ARTICLES from TravelPriceCompare.com

Fly With Discounted Tickets
Flying around in some countries or states could be quiet a luxurious affair. With fluctuating ATF and increase in number of people flying, smart travelers can always find ways to save bucks. One of the best ways to save more while you are traveling with family on vacation or on a business trip is to book well in advance... READ MORE

Biofuel Powers Aviation Sector
What looked like a mere dream and an on paper idea few years back has become a reality now. Thanks to the Green energy and means which have empowered the aviation sector. UOP has achieved a breakthrough solution for powering the jets with bio fuel... READ MORE

Low Cost Airliners Rule The Aviation Sector
Legacy carriers are losing their sheen and market share steadily to the low cost and no frill airliners. Way back in 2000, legacy carriers including US Airways, Delta Airlines, Continental Airways, Alaska and Northwest Airways had a consolidated market share of 90%. Today they have lost a major chunk of passenger load to AirTran, JetBlue and Southwest Airlines, the low cost carriers... READ MORE

read other articles from TravelPriceCompare.com here





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