Starting An Airline
boeing.com
boeing.com
And they sold their expensive equipment and made lots of money, only it turned out that many ISPs couldn't really afford all this upfront, and it made sense for L to operate a financing company itself and finance the purchases of the expensive hardware. There was a huge and growing demand, and if an ISP defaulted, well, L could take back the equipment and refurb it and sell it to the next company that came along.
Only when the market actually saturated, there was L holding all these valuable financing agreements backed mostly by the hardware that nobody new wanted to buy.
For anyone interested in learning more: https://en.wikipedia.org/wiki/Lucent#History
An exclusive airline that is basically 1st class through out the entire cabin.
* No carry-on suit cases
* Free alcohol
* Free meals on all flights
Membership required, and can be revoked by:
* Talking on your cell phone
* Not following crew member instructions
* Trying to prevent the person infront of you from reclining
* Trying to jump the line and board when your row isn't called
* Not being able to actually lift 40lbs but requesting an exit row seat anyway
* Trying to smash your carry on into an already full overhead bin
* Listening to music loudly etc.
* No carry-on suit cases
And then you said: * Trying to smash your carry on into an already full overhead bin
Are you sure this isn't just a list of your air travel pet peeves? :)* Free alcohol * Free meals on all flights
plus some.
To all my children posters, I am clearly doing it wrong.
Lufthy even offers free alcohol in coach on intra-EU flights.
Maybe when I'm older and a 12 hour flight in economy becomes really unpleasant instead of just an inconvenience.
Doing an even more bareboned airline is just a race to the bottom. Eventually you'll end up with like MAC flights in a C130 sitting in a jumpseat.
So instead, try the opposite. A nicer airline.
Midwest Express tried this in the late 1990's-early aughts. It didn't work out for them.
There's a lot of tweaks that could change the airline industry, but certainly no easy task.
The pesky regulations say they need x attendants per passenger.
Everyone in every discipline should be required to take Finance 101.
* Very few ground staff - say 4 at a small-to-mid-sized destination. They do all tasks: Ticket agent, baggage handler, gate agent.
* No connecting flights - direct only.
* All the same type of equipment (MD-80s) to streamline maintenance.
etc.
[1]
Unfortunately, AFAIK, every airport in the country is required either to use TSA screening or to use private security companies whose policies are set by the TSA[1], so this is unlikely ever to happen.
[0] With the exception of ensuring that cockpit doors are always closed and locked during flight - this was the one absolutely critical security improvement that came out of 9/11.
[1] I believe SFO is one airport that uses a private company.
But I can fly to London return for 30 euro pretty much any time of the year in return for that.
[0] http://en.wikipedia.org/wiki/History_of_United_Airlines#Begi...
Yet, the probability this will ever happen still is very close to zero.
http://www.telegraph.co.uk/finance/2774088/Buffett-My-elepha...
Allegiant is a great example. They fly slightly less fuel efficient MD-80s which can be bought at bargain prices from the legacy carriers (MD-80's are those narrow body jets with the engines in the back and the 3-2 seating arrangement). They make it work by flying nonstop flights from smaller airports (without competing carriers on those routes), with low frequency. The low frequency also gives them longer until they have to do a heavy maintenance check -- which, for an older MD-80, usually costs more than the plane is worth. http://www.fastcompany.com/1325762/heard-allegiant-air-why-i... .
By the way, that's why we have this phenomenon: http://en.wikipedia.org/wiki/Aircraft_boneyard
a) Never take any planes out of service
b) fly every plane until it crashes
No manmade machines have infinite service life, so a is out. No airline passengers will accept b.
It's not like a car, where it can be driven until the wheels fall off. Planes are flown until they need an expensive scheduled maintenance check, even if they seem to work just fine.
(To be absolutely clear: I don't think this is a bad thing. Maintenance checks are good. Falling out of the sky is bad.)
Go look at their route schedule. Looks like penetration to me to more established areas.
It fits Clayton Christensen's disruptive model perfectly.
Boing and Airbus are the only viable suppliers of long-range commercial aircraft, and if you order a 787 or A380 you will need to wait[1].
But it's not "locked up" so much as it takes a fair while to build, and they do have order books. But they are desperate to sell as many as they can (stories of orders being cancelled aren't uncommon).
In the short and medium range market there are a number of other suppliers. Embraer and Bombardier both have planes that sell well. For the more adventurous there are the Irkut MS-21 and Sukhoi Superjet 100 (both pretty modern, but I think only in service with Aeroflot)
As noted elsewhere, there is a large market in second hand aircraft.
[1] There is actually http://en.wikipedia.org/wiki/Ilyushin_Il-96, but I think that has only been sold to Aeroflot and other Russian airlines. Edit: turns out the passenger version of this is now out of production.
Their margins are already thin even packing it as they do, so at only the equivalent of 2/3 current capacity that would be a recipe for failure. They'd have to charge probably twice as much.