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gvillenative

GSP International

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10 hours ago, gman430 said:

If an airline can’t survive with a load factor in the 70’s then they shouldn’t even be in business. 

Doesn't mean they can't survive, they just don't want to operate that way.  I think the disconnect with some is that load factor equals profitability.  That couldn't be further from the truth!  These ULLC want their planes to be as full as possible as the ticket prices are so low, the money comes from the ad ons.  If you are missing 25% of the flight your are missing a lot more money than that of the legacy carriers.   And that's just the tip of the iceberg when it comes to what makes a route profitable!

Yeah they could survive flying that way, but they don't want to.  Have you not seen how Frontier operates?  They bounce from market to market testing out the waters, using airport incentives, trying to maximize the most $ they can get out of every flight.  They are known for their quick exits, sometimes only lasting a couple months.  Most argue you can't even judge a route that quick.  Sometimes they've come back to a market 2 or 3 times in just a matter of years only to leave again.  Who knows, maybe they'll dance with GSP again!

The fact is if you look at their loads overall, they like their planes full.  Overall they run near 90% load factor.  A good place of info if curious is https://www.transtats.bts.gov/.  Frontier just dropped Mobile who had very similar loads as GSP and BHM who had better loads than GSP.   Anyone who follows the ULCCs closely shouldn't be surprised by this at all!

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:shok: Frontier Airlines is cutting 90% of its flights: https://www.cnbc.com/2020/03/29/consolidating-flights-to-us-cities-could-help-stem-airline-losses.html That is insane. GSP is definitely not alone.

Frontier Airlines, a low cost-carrier based in Denver, is going the furthest, maintaining just 10% of its schedule in April. The pullback is not only because of slow demand, but also because Frontier said a reduced schedule is the only way to maintain safe operations. 

“We believe it is in the interest of everyone’s safety that we reduce flying to a level which lessens the strains now being place on ATC’s (air traffic controllers) TSA and our many other partners,” CEO Barry Biffle wrote in an employee letter sent out Saturday.

Edited by gman430

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GSP’s traffic is down 90%: 

https://www.foxcarolina.com/gsp-limits-parking-makes-other-operational-changes-as-passenger-traffic/article_79bcffb2-72b8-11ea-b032-d79d1c117050.html 

I’m sure every other airport throughout the entire world is in the same boat. Also, Frontier is ending all service out of Charlotte for the time being so once again GSP is not alone.

Edited by gman430

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