Its not always discounted Raz. Not everyone can plan many months ahead, something I am sure you are cognisant of.
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I've just twigged that you are talking about the Space Seat in Premium Economy not the Sky Couch seats in the port and starboard outboard seats. Sorry completely forgotten what they were like even since the option to use them on for no cost seat select vanished about a year ago.
As for Mr and Mrs Joe Average not being happy about their seats on a return trip to Disneyland for $999 return... For those that can afford and want to pay for Premium Economy or Business, yes you can say that reality bites. The truth is also that most of the seats on a flight are occupied by the economy cabin and if you don't end up in the preferred or frequent flyer seats back there, it is pretty miserable especially if you end in the row at the back that doesn't recline next to the toilet.
Agree with you but here's the thing. Mr and Mrs Joe average and especially their kids don't realise that a return journey of just on 21,000 km's for $999 is actually an incredible bargain !
It represents only 4.8 cents per RPK and AIR's cost per RPK is more than that. If it weren't for premium and business class and freight AIR could not run an airline selling seats at 4.8 cents per RPK as its below cost.
Classic case of you get what you pay for but that often doesn't stop many Mr and Mrs Joe average thinking they're entitled to better seats and meals than they get. Airlines are caught between a rock and a hard place. Many people want travel bargains but then some price conscious travellers bleat like lambs lost from their mothers that they don't get a first class experience. There's no pleasing some customers...they're the ones we should ship off to Jetstar :D
They want the best they can get for the price,and will fork out their $$ to whoever provides it...not so complicated
Meanwhile ,you want the best return on your shares--Joe public wants the best deal for his $$---somewhere in the mix one company will do better than another--the one that gets the most of everyones $$
A mention of AIR and THL on Paul Henry show at 6.37 this morning.
Roger and Paper Tiger both say July revenues about the same as last year (down a tiny fraction)
I reckon July passenger revenues are down ~9% on last year. Even allowing for 6% less days this year revenues are down - about 3%
If that trend continues full year revenues could be down $150m
Minor matter and when a 30 cent dividend is announced Friday everything else will be irrelevant
Yes that is often true. But by virtue of having the 200 odd passengers sitting in cattle class and freight, this pays most of the operating costs and the premium and business passengers are where the margin is made. If you have an empty cattle class then all that RPK for the Premium and Business doesn't matter if the operating costs aren't covered by the freight and the economy passengers.
Broken seats and inflight entertainment that doesn't work as well as delays are some of the unhelpful things that make the experience less than adequate for some passengers.
Personally, I don't buy flexi or works tickets for Trans Tasman for business or personal travel - I just use the Koru Lounge access to grab a meal, do some work on the free WiFi, fill my water bottle for the flight and if my toddler is coming with me, get a fluffy and warm milk for his sippy cup and a few crackers, cheese, sandwiches and an apple for his lunchbox... and I have some Bose Noise Cancelling Headphones and my iPad to watch something.
Qantas result in, below expectations, although first dividend since 2009, what a suckers investment:-)
It is not difficult to work out:
AIR give you the % changes in figures corrected for the different number of days.
So you do not need to worry about disparity:
http://takedesigns.com/wp-content/up...rots_19477.jpg
Short Haul ASK is up 5.7% and RASK is down 6.0%, and 1.057 * 0.94 = 0.9936
or a decrease of 0.64%, which is the change in revenue. [ ASK * Revenue / ASK = Revenue ]
Long Haul you can do the sums yourself, discovering that the difference is even less (about the cost of feeding that parrot above the left over in-flight nuts).
Best Wishes
Paper Tiger
PS: While I can understand you believing Roger could get his numbers wrong, I am surprised that you should think that of me and I would appreciate it if when you do the long-haul figures you do not point out the misplaced decimal point in my original result.