RE: Sign of the Times

I disagree.

The economics of low-cost airlines appear to work well when the airline in question operates:

(a) only one type of aircraft (AC operates everything ever made!)

(b) on short routes (where lack of comfort and amenities is less important to passengers)

(c) with no travel agents

However unless AC abandons long-haul flying then it will not be able to adopt the proven low-cost model.

By contrast, well-run full service airlines are doing well – Singapore Airlines, Qantas, British Airways and so on. The experience of BA in particular is that costs must be cut, but the premium product must not be diluted.

They probably need to get over the American Disease (unions) rather then try to be something they aren’t.