United president warns new low-cost carriers can’t control their business model
United Airlines president Scott Kirby issued a warning to potential new-entrant low-cost-carriers, including JetBlue founder David Neeleman’s Moxie: United will match your fares. Kirby said he’s heard of about 50 airlines over the years that were supposed to be created but Virgin America, founded in 2004, was the last startup airline in the US that actually became a reality. The low-cost airline model is predicated on the competition not matching prices, Kirby said, and unlike the situation over the last 30 years, United now has the capabilities with segmentation, including basic economy, to go tit-for-tat with the new entrants. “It’s a business model they are not in control of,” Kirby said, referring to low-cost carriers. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-05-28/star/united-president-warns-new-low-cost-carriers-can2019t-control-their-business-model
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United president warns new low-cost carriers can’t control their business model
United Airlines president Scott Kirby issued a warning to potential new-entrant low-cost-carriers, including JetBlue founder David Neeleman’s Moxie: United will match your fares. Kirby said he’s heard of about 50 airlines over the years that were supposed to be created but Virgin America, founded in 2004, was the last startup airline in the US that actually became a reality. The low-cost airline model is predicated on the competition not matching prices, Kirby said, and unlike the situation over the last 30 years, United now has the capabilities with segmentation, including basic economy, to go tit-for-tat with the new entrants. “It’s a business model they are not in control of,” Kirby said, referring to low-cost carriers. <br/>
