The Gordon geckos of Australia and the rest of the world will not put up with travelling in Y W or J class for too long after the downturn starts to climb again - status in their world is everything.
Just as you have seen a cutback in the bad times, when the good times return - and they will, it will just take time - there will be people to take up the premium product.
What has happened in the last 10 years is that the cost of travel has decreased to capture the low end market and that base is still traveling (thank god!) so now there are more passengers in Y W .... but increased J and a return to P will happen.
In the meantime, airlines will modify their product to achieve the best return from their assets.
It is those airlines which can do this successfully that will be around in 5 years time. I believe QF is one of those airlines - as much as people deride them - they do know how to return a profit from limited sources.
|