How the FAA Found One Airline a New Product Line

Discussion in 'Other Airlines | North America' started by gregm, Apr 4, 2014.  |  Print Topic

  1. gregm

    gregm Gold Member

    Messages:
    1,508
    Likes Received:
    2,161
    Status Points:
    1,200
    Airlines usually complain that Federal Aviation Administration rules just make running an airline more expensive. They don’t often give the agency credit for a whole new line of revenue.

    No-frills carrier Allegiant Air, however, is happy to share the credit. To get approval to fly in and out of Hawaii, the airline had to make provisions for adequate rest for its pilots. A release announcing its new Giant Seats, which are large leather chairs the airline is now selling for $50 to $90, the company explained....


    Read more: http://www.businessweek.com/article...e-airline-a-new-product-line?campaign_id=yhoo
     
    Newscience likes this.
  2. Newscience

    Newscience Gold Member

    Messages:
    14,694
    Likes Received:
    45,079
    Status Points:
    16,475
    Thanks for posting, gregm! My Las Vegas-based friends just mentioned the Allegiant Air to Hawaii connection. And you just have to love the comment left in Bloomberg BusinessWeek:

    "The airline industry is the most pathetic of all sectors. They make you as uncomfortable and unhappy as possible and then demand that you pay them in order to relieve your difficulties. Are there any other businesses that use this as a consumer service model?"

    Yup, that's the American-based air carriers business model - torture the passengers, and make them pay you for relief!

    Newscience
     
    Counsellor and gregm like this.
  3. gregm

    gregm Gold Member

    Messages:
    1,508
    Likes Received:
    2,161
    Status Points:
    1,200
    You're most welcome! ;)
     
    Newscience likes this.
  4. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

    Messages:
    28,214
    Likes Received:
    61,742
    Status Points:
    20,020
    People can complain all they want. But they still pay Allegiant a lot of money to fly and in many cases it is the only option serving the markets point-to-point if at all. The company is hugely profitable and the stock hasn't done too badly in the past few years either.
     
  5. Newscience

    Newscience Gold Member

    Messages:
    14,694
    Likes Received:
    45,079
    Status Points:
    16,475
    It's absolutely true that some airlines survive by being "the only game in town" and providing air service from point-to-point in locations where the competition is missing. And it seems that the "small guys" almost always lose something as they change, and not always for the better, when they turn into the "big guys".

    One case in point is Southwest Airlines. I've been a (very) frequent flyer of Southwest for the past 9 years. All things considered, I'd gladly fly with the "old" Southwest versus the "new" Southwest. Being customer-friendly makes a big difference, IMHV, even if the seating or something else on a flight isn't up to par.

    Insofar as profit margin is concerned, I can't imagine investing in an airline stock to try to get rich. There are folks making a fortune off of some airlines, but they are mostly located in the airline executive suites.
     
    Counsellor likes this.
  6. iolaire
    Original Member

    iolaire Gold Member

    Messages:
    3,510
    Likes Received:
    5,767
    Status Points:
    4,170
    Are they installing refurbished business class seats pulled from other airlines?
     
    Newscience likes this.

Share This Page