Little Airlines Article Response

         The company La Compagnie fly all business class B757s between NYC and Paris for less than half the round trip price on a larger carrier. Being said they are not trying to be the most luxurious business class but they are all about being the best for the price.

Iceland based WOW Air uses narrow-body Airbus 320s and has launched a 4x a week service from Baltimore and Boston to Reykjavik for only $400. The article says using smaller jets means you need fewer passengers to fill them, so there’s less capacity risk; charging 400 bucks round-trip almost guarantees you’ll get all the passengers you need. This model though is $400 dollars for the seat, while there are extra fees for baggage, meals, seat location, and even printing boarding passes. This model is the opposite of Norwegian Air Shuttle, which we have already studied as a class. Norwegian is all about long-haul, low-cost.

http://www.forbes.com/sites/garywalther/2014/09/25/la-compagnie-the-upstart-business-class-only-airline-with-the-best-ny-paris-business-class-fare/

I think La Compagnie business model will be more successful because having those extra costs on top of ticket price I believe will deter many people from thr WOW Air model type. I find it appealing that La Compagnie doesn’t try to claim to be the best but the best for the price. They also don’t require an advanced purchase of tickets which means for people who last minute need to travel this is a huge perk, saving them thousands if they were to fly one of the main airliners.

Overall, these new airlines bring a lot of competition and new ways of operating to the industry. I think I will still take time for the populous to build trust with all the new company names and how they do things. If these companies can stay afloat it could greatly expand the airline industry and cause American companies to thoroughly look at how they operate.