The high costs associated with running an airline simply don’t allow for the sale of low price tickets. Budget or Low Cost airlines that base their business model only on selling tickets at lower than cost are all just committing slow motion suicide.
Almost 200 years ago John Ruskin wrote:-
“The Common Law of Business Balance”.
“There is hardly anything in the world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that person’s lawful prey. It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better”.
We will not sell airline tickets at below cost price just to compete with other airlines who have already lost money, and who will continue to lose money. We think it’s far more sensible and sustainable to establish an airline that provides business flights at a reasonable and fair price.
We have our own unique system for pricing tickets, based on the Uber concept of collective discounts. The more people who fly the cheaper the ticket. Starting with one price per ticket of €300 per seat (one way) on all routes and reducing the price based on increased occupancy.
Pricing structure : 0-60 % load factor €300 one way, 61-70% load factor €287,50 one way, 71-80% load factor €275 one way, 81-90% load factor €262,50 one way and 91-100% load factor €250 one way.
The discount will only be on offer for those who register with us and buy their tickets directly off/through our website. The discount will be refunded automatically to the account of registered Extrajet customers and can then be used towards purchasing additional flights. None registered customers who buy through a GDS system will pay €300 per ticket per leg, €600 return and will not be eligible for discounts.
We will charge a reasonable and fair amount because “Low Cost” doesn’t make sense in either the short or long term, but fair prices do.
Many of an airline company’s operating expenses are fixed. Employee salaries, lease payments, insurance premiums, depreciation expenses… all of those things can’t be changed quickly.
As a “virtual airline” we will outsource all of our flight operations to Maleth Aero, a well established and professional aircraft management company. Additionally, we have secured several other partners including a GDS provider who will help us to sell our tickets online. Outsourcing will allow us to focus on what we do best, which is sales and marketing, business development and growth.
We believe that frequency is key – on high volume business routes, having more frequent flights leads to greater market capture than flying high capacity / low frequency. For this reason we will offer a twice daily service on all of our primary routes. By fully utilizing our aircraft assets we will reduce our fixed costs considerably.
We have a clear vision. We want to create a business which makes a positive impact at a commercial, environmental and social level. This is our going in point.
We want to work with a talented, intelligent and committed group of people. By that we mean people who are both financially astute, environmentally conscious, socially aware, and those that don’t leave their personalities at home. We will operate in areas where we know we can create new jobs, raise standards of living and really make a social difference, both immediately and in the future. We will focus on delivering high quality services with a focus on safety. We will do this with integrity, pride and professionalism.