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The second drawback is this expansion of service by foreign carriers in us markets. In many cases, these foreign carriers have higher product and service standards than their us counterparts, especially in first and business class, allowing them to gain additional high yield passengers, even if they start service on a route after a us carrier starts service.
Moreover, foreign carriers often offer nonstop service where us carriers offer hub and spoke connections though this works both ways, depending on the routes, since passengers can connect in the us on american carriers or abroad if on foreign carriers, carriers have tried in recent years to upgrade their cabins to compete with foreign carriers, but sadly, they have fallen behind in many areas, and this could impact their ability to make international routes as profitable as they desire.
Legacy carriers have done nearly all they can to reduce costs. There are no major cost cuts they can make, and any further cost cuts will either shrink the size of the carriers, or trim operations that should not be trimmed for the long term benefit of the company.
What will need to happen now is that these carriers will need to look into the future and see how they can best position themselves towards these new realities. This means that carriers need to rethink their expansion as well as their new aircraft purchases and timing.
Expect increased pressure from airlines around the world on aircraft manufacturers to create an aircraft that can deliver dramatic fuel efficiency gains. Moreover, airlines may exert continuing pressure on to offer better solutions to energy policy.
This is not a problem we can drill our way out of, but rather one where established alternative energy solutions need to be implemented such as electric vehicles so oil can be used for industries where serious alternatives do not yet exist such as aviation.
By reducing the pressure on oil prices from automobile drivers and other oil users, airlines will see lower crude prices. But that will only come when airlines and other large companies lobby for a comprehensive national energy policy that takes renewables seriously.
If the airline industry is to thrive, oil prices will have to come down, and the only way to do this is to reduce demand. Ultimately, this is where the solution lies. european carriers , international carriers. The new service is just one of several new international to be added to seattle, a city that has arguably experienced a shortage of nonstop, international.
Air france launched service from seattle this past summer, just in time for the peak summer travel season, and aeromexico also recently launched service between seattle and mexico city. The lufthansa service announcement also comes at a time when carriers are rapidly expanding their international, particularly to european destinations.
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