But this does tell us something. Traffic, especially premium traffic is off big time. More here. The long standing industry thinking of gouging business travelers has hit something of a wall. Now the airline industry keeps talking of things coming back.
Well there is no certainty anything like the good old days are coming back. Rather look at the evidence - firms like CISCO have probably cut back business travel for ever. Their future is in less travel and vastly upgraded tele-commuting and video conferencing.
So when the economy comes back, as it will, people will have learned new ways of getting their work done at much lower costs. The lost time of traveling will be seen as even more expensive than staying late in the NY office to speak with customers or colleagues in Hong Kong. The commute home sure beats 14 hours cramped in a seat. Moreover, when the economy comes back the consensus seems to be that oil will once more head towards $150/bbl. That will crimp airlines' business even more.
See when things go this way, the percentage of travel done for business at the expensive end of the plane may have shrunk permanently. Seriously, how many people can justify paying nearly $20,000 for a seat? Especially when maybe forty feet back somebody else paying under $1,000 for the same trip?
We are in the midst of a sea change in air travel.
In other news --
- BA's results
- Qantas charges for exit rows, gives first class away - yes, its true
- Air NZ ponders 737-300 replacements
- CH-47 - Boeing's next legendary aircraft (trifecta B-52, KC-135 & CH-47)
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