Show-up-and-go, pay by kg, airline

guitarplyr1990

New member
Right now would be the worst possible time to start an airline, but a post about someone's hesitation to book flights due to our country's (Aus) day-to-day border restrictions (travel interstate is being intermittently restricted) gave me an idea for a new airline business model.

I'm not in a (currently - thinking positively!) position to start an airline, but I thought I'd share as I'd be interested to hear people's thoughts and critiques.

This airline would start as a domestic carrier, (again, being in AUS) let's say between 3 of our largest cities; Melbourne, Sydney, and Brisbane.

Flights would leave every hour (or another fixed interval).

A local low-cost carrier sells seats between MEL/SYD for $99 and the aircraft they use has 180 seats.

From this, we can assume that they at least break even; 99*180= $17820.

With this being (or at least was) in the top 10 of the busiest routes, there's plenty of demand.

So with that demand, each hour, there is a bidding system for seats.

If the last plane departed at 10:00, the ticket for the 11:00 flight will be at its cheapest at 10:01.

Between 10:01 and 10:58 (door closes) that price will steadily increase based on a number of calculations (load factor, demand, time of day). If you're in the terminal, had the app, no luggage to check, there's no reason why you couldn't buy a seat at 10:57

Seating allocation would be done at the boarding desk. There are some great videos on the most efficient boarding procedures (Here's CCP Grey's).

Boarding is only possible with the app. You can nominate a person(s) you're travelling with (which will affect your seat allocation and theirs), and you can specify a preference for window/middle/aisle and whether you want to pay more for the good seats, otherwise, your seat is determined by the order in which you board the plane.

Preferential seats will be offered to those without hand luggage.

This low-cost airline is going to turn that plane around so fast, the blades in the turbine will barely have time to come to a complete stop.

Booking alterations are free, but if you buy a ticket at $160 and initiate the transfer to a seat that is selling for less, you lose out on the value.

Check-in involves both you and all your luggage being weighed.

You will receive a total weight allowance and will receive credit for being under and will pay if your collective weight is over.

You and your hand luggage will also be scanned for the total volume.

A petite person with no luggage will pay significantly less than a larger person with a checked bag, a carry on suitcase and a laptop case.

This way the price you pay more closely resembles the cost to the business (fuel).
 
@tango2000 What costs do you think I am overlooking if my price model is based on a competitor's retail price?

As for discrimination, a person's weight is not a protected class. It would only be an issue if that person had a recognised disability (if you charged for a wheelchair / assistant animal etc).
 
@guitarplyr1990 At leaston the us weight isn't the issue. Is considered descrimination for charging one person a different price than another for the same service or item.

Your overlooking issues such as maintenance, storage, inspections, pay for piolets
 
@guitarplyr1990 You are basically describing a part of a system that actually exists for airlines which is called revenue management. So yes, that is definitely a point. Also the business model sets its focus on keeping the plane in the air since a plane on the ground means loss. Maybe you have heard of Ryanair in Europe. They follow such principles and became very successful very quickly. As long as you plan enough time for maintenance and you deliver what you promise, I don’t see why it wouldn’t work in AUS. Especially since Qantas became the biggest player now.

I see the biggest challenge less in the business model, but more in financing it. Since founding an airline might be one of the most expensive businesses I can imagine.
 

Similar threads

Back
Top