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Low-cost international flights are doomed: analyst
For the past few years, air travel from the U.S. to Europe was at unheard of levels of affordability. Airlines like Wow, Norwegian, Primera, Level, Iceland and others provided travelers with round-trip options that occasionally even dipped under $300. The competition also pushed down prices for legacy carriers, creating a race to the bottom that benefited travelers. But a new research note from Bernstein analysts says costs will rise for smaller airlines and will eventually necessitate higher… (finance.yahoo.com) Altro...
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Total BS. Fuel does NOT cost the same for all air carriers. Same with labor. I'd bet these analyst's firms are short sellers in the mentioned stocks.
To make a "low" cost airline work, they have to pack their planes and keep them in the air. But when they start tacking on all the extra fee's, then they aren't really low cost anymore. Right now, JFK to DeGualle is only $75 less on Norwegian than American, and I can earn miles on American.
Low cost international flights happen every hour of the day in Europe. Low cost Trans Atlantic flights have doomed many airlines. Lets Start with Laker Airlines. Norwegian is going to be the next.
I think it's safe to blame Russia for some of the difficulties faced by long haul low cost carriers.
https://www.youtube.com/watch?v=jdNDYBt9e_U
https://www.youtube.com/watch?v=jdNDYBt9e_U
Russian airspace has no effect on transatlantic flights, which is the focus of the article.
