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
