Flair struggling?

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Re: Flair struggling?

Post by atphat » Wed May 16, 2018 7:43 pm

Diadem wrote:
Wed May 16, 2018 6:57 pm
$2 fares as a promotional idea mean nothing if they aren't advertising those fares; I haven't seen a single Flair ad since they took over New Leaf, and all of the buzz that New Leaf created has been forgotten over the last year. I have never seen any marketing of any kind with the Flair logo on it. One of my relatives is a travel agent, and when I mentioned Flair she had no idea what I was talking about. They need to get people to know who they are before they get pax in the seats, and they're failing miserably in that regard.
If a travel agent doesn’t know about Flair, I would just assume they are terrible at their job. It’s not like sked service airlines are a dime a dozen in this county.
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CFM Symphony
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Re: Flair struggling?

Post by CFM Symphony » Wed May 16, 2018 9:38 pm

Didn’t Flair just increase their sked flying threefold recently? To me that screams of liquidity issues - trying to generate cash fast in order to meet current liabilities. That’s exactly what C3 did in one last, desperate attempt right before the curtain came down. It will either put them on the map, or bankrupt them.

Does Flair own their machines outright? If they do, and those old -400s aren’t worth much more that 3 or 4 mil, that’s a very low capitalisation cost and it could mean a much lower break even load factor than say WJ with its pricier NGs. I’d be curious to see how their CASM compares to the rest, but I guess we’ll never know.

Regarding the ULCC model viability in Canada my opinion is the following: in Europe and to a degree in the US, the ULCC model directly translates into ultra low fares for reasons already mentioned in above posts. There is absolutely nothing preventing a ULCC in Canada, but because that first C is so much higher here (again for the already stated reasons), it won’t manifest into ultra low fares - certainly not ones as low as anything in the EU. In the end if an argument has to be made regarding the unviability of the ULCC model in Canada, it has to be that there is a much smaller cost gap between LCCs like Rouge and ULCCs. That gap serves as a strong barrier to entry into the market and that’s why, even with 49% foreign financing approved, brand new ULCCs have struggled to take off.

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