Significant Opportunities in Short-Haul/Leisure Markets
Traditional airline pricing stifles demand in short-haul routes
- Leisure travel declines or seeks other transportation modes
- Business travel frequency also becomes reduced
Secondary routes often end up transferred to regional carriers
- Regional jets have higher unit costs than jet aircraft
- Higher costs and reduced capacity leads to higher prices
- Resulting in further pressure on demand
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Prohibitive cost structures limit major airlines service in predominantly leisure routes (i.e. Orlando and Las Vegas)