Hi all,
Regarding the R/I advantage for running multiple flights, is there a limit to that concept? ie: for the following two scenario's, is operator #1 still at an advantage even though both operators are running high frequency schedules?
Operator #1 : 10 flights x 100 seats
Operator #2 : 05 flights x 200 seats
Thanks in advance, I am not sure if my question is clear, I hope so..
Regards
Richard
Yes operator #1 will win the market share. What they care about is frequency, not quantity.
Operator 1 will win. Passengers prefer frequency over anything else. I remember in a previous fame some one was flying a prop plane 3 times a day to my base on a 1500 mile route with Q400's and I was flying twice daily with A320's and I was bleeding money like crazy on that route.
Quote from: Riger on December 09, 2010, 02:52:53 PM
Hi all,
Regarding the R/I advantage for running multiple flights, is there a limit to that concept? ie: for the following two scenario's, is operator #1 still at an advantage even though both operators are running high frequency schedules?
Operator #1 : 10 flights x 100 seats
Operator #2 : 05 flights x 200 seats
As far as RI, it goes up on its own when you fly the route. When you fly less than 7x per week, RI goes up slower. There is a limit to RI growth. Flying more than 7x per week (1x per day) does not make go RI go up faster (AFAIK).
So if these 2 airlines started flying on the same day, and had no RI marketing (which has minimum impact in any case), the RI would grow at the same pace, and both airlines would hit RI of 100 at the same time.
Now, when both airlines have the same RI, frequency wins. Frequency is just one of many variables (others are ticket price, speed of aircraft, quality of seating, CI), but frequency is the more powerful variable, and if all else is equal, Operator 1 wins hands down.
Quote from: coopdogyo on December 09, 2010, 03:19:39 PM
Operator 1 will win. Passengers prefer frequency over anything else. I remember in a previous fame some one was flying a prop plane 3 times a day to my base on a 1500 mile route with Q400's and I was flying twice daily with A320's and I was bleeding money like crazy on that route.
Yep I've done exactly what your competitor did (hope it wasnt me against you! :-[ ) - I added a load of Q400's onto a route againt my competitors Jets and I was getting awsome load factors and a really good profit to boot in a matter of game weeks I had gone from being the new guy on the airways to the dominant carrier!
Thanks for all the feedback. Good Value Information.
Best Regards
Richard