5 ms·

Did you ever consider starting a small airline as customer #0 for the reservation system?

by ahefner 5y ago

Marazan 5y ago
You don't make money in the airline industry by being an airline.
- ghaff 5y ago
  I don't know if it's still true. Probably not. But at one point in the past 10 or 15 years I heard the (what seemed to me credible) claim that, taken as a whole, the commercial airline industry had never made money.
  - nradov 5y ago
    The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down. -- Warren Buffett, in the 2007 Berkshire Hathaway shareholder letter
  - bobthepanda 5y ago
    COVID was easily the worst thing that has happened to the airline industry bar none. ICAO estimates that 2020 resulted in $371B in losses.
- dzhiurgis 5y ago
  I used to joke Ryanair makes money by selling tickets, vapes and (soon) condoms. TBH still kinda good airline for short flights. It's the clientele that makes it less palatable.
  - refurb 5y ago
    Didn’t the CEO of Ryanair say he was going to make tickets free at some point? I mean the fare would be super basic, no luggage, only what can go under the seat. No water, food. Print your own ticket, etc. Basically all your margin is on the extras which many people are willing to pay (as long as you’re upfront about it). I remember flying Ryanair and if you’re prepared to follow directions, it can be very cheap.
- midasuni 5y ago
  The best way to become a millionaire through airlines is to start as a billionaire
6502nerdface 5y ago
...or selling a live feed of airline KPI estimates to quantitative hedge funds and market research companies?
- ahefner 5y ago
  Evil genius. You should work for Google.

Did you ever consider starting a small airline as customer #0 for the reservation system?

Marazan 5y ago

You don't make money in the airline industry by being an airline.

ghaff 5y ago
I don't know if it's still true. Probably not. But at one point in the past 10 or 15 years I heard the (what seemed to me credible) claim that, taken as a whole, the commercial airline industry had never made money.
- nradov 5y ago
  The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down. -- Warren Buffett, in the 2007 Berkshire Hathaway shareholder letter
- bobthepanda 5y ago
  COVID was easily the worst thing that has happened to the airline industry bar none. ICAO estimates that 2020 resulted in $371B in losses.
dzhiurgis 5y ago
I used to joke Ryanair makes money by selling tickets, vapes and (soon) condoms. TBH still kinda good airline for short flights. It's the clientele that makes it less palatable.
- refurb 5y ago
  Didn’t the CEO of Ryanair say he was going to make tickets free at some point? I mean the fare would be super basic, no luggage, only what can go under the seat. No water, food. Print your own ticket, etc. Basically all your margin is on the extras which many people are willing to pay (as long as you’re upfront about it). I remember flying Ryanair and if you’re prepared to follow directions, it can be very cheap.
midasuni 5y ago
The best way to become a millionaire through airlines is to start as a billionaire

6502nerdface 5y ago

...or selling a live feed of airline KPI estimates to quantitative hedge funds and market research companies?

ahefner 5y ago
Evil genius. You should work for Google.