Airlines slow to react to close up return of demand surge
Looks like some airline systems are not suited to quick adjustments in the necessary flexibility of the schedule.
As CoVid19 fears lightens the careful comeback steps of airlines are being overtaken by a surge in customer demands as a result of constant new re-openings of borders.
Prices are going up without airlines responding quickly with additional flights. Sample the prices close in for the 1 hour Oslo to Copenhagen route lay above Euro 500.- It used to be in the 120.- range and have been sold as low as35.- Many airlines are used to a long time perspective looking at the forward bookings weeks and months in advance. That is no good in what is more like a suddenly emerging market. When customers in addition are vary about booking long in advance due to sudden and the airlines lack of immediate refunds for previous flight cancellations, they therefore book only for next week or the week after. Then you need to add flights in that time perspective.
It is not a difficult operation now when you have plenty of resources standing by. Many planes that should be kept in such a state of readiness that they can be scheduled in tomorrow if needs be, or at least next week. And many crews o all types just waiting to be called back.
The only thing maybe missing is an awake management and systems suited for rapid changes. And there is no excuse if the latter is not ready after months of time to prepare.
The expected massive seat sales and rock low ticket prices has turned out to be a careful tippy toe by most airline with a resultant massive price hike for many passengers. Don't expect to make up the shortfall of income during lockdown with only 30% of your fleet in action. Profit is in numbers and you don't get the masses to fly by strangling supply and exorbitant prices.
As CoVid19 fears lightens the careful comeback steps of airlines are being overtaken by a surge in customer demands as a result of constant new re-openings of borders.
Prices are going up without airlines responding quickly with additional flights. Sample the prices close in for the 1 hour Oslo to Copenhagen route lay above Euro 500.- It used to be in the 120.- range and have been sold as low as35.- Many airlines are used to a long time perspective looking at the forward bookings weeks and months in advance. That is no good in what is more like a suddenly emerging market. When customers in addition are vary about booking long in advance due to sudden and the airlines lack of immediate refunds for previous flight cancellations, they therefore book only for next week or the week after. Then you need to add flights in that time perspective.
It is not a difficult operation now when you have plenty of resources standing by. Many planes that should be kept in such a state of readiness that they can be scheduled in tomorrow if needs be, or at least next week. And many crews o all types just waiting to be called back.
The only thing maybe missing is an awake management and systems suited for rapid changes. And there is no excuse if the latter is not ready after months of time to prepare.
The expected massive seat sales and rock low ticket prices has turned out to be a careful tippy toe by most airline with a resultant massive price hike for many passengers. Don't expect to make up the shortfall of income during lockdown with only 30% of your fleet in action. Profit is in numbers and you don't get the masses to fly by strangling supply and exorbitant prices.
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