9 replies to this topic

[WorldTraveler]

FWAAA, on 24 November 2011 - 11:15 AM, said:

I assume that B6 will fly business-heavy routes into other carriers' hubs, like perhaps LGA-DTW, LGA-MSP and LGA-ATL, as well as the obvious candidates LGA-MIA, LGA-ORD, LGA-DFW and LGA-IAH.

there are ONLY 8 slot pairs at each airport for US domestic carriers since WS can only use theirs to/from Canada... B6 will go where they have the greatest chance of making money and also where there is the least low fare competition. It doesn't take much to figure out where the highest average fares out of NYC and DCA are and also see those are large monopoly routes - and are NOT to DL hubs.

[WorldTraveler]

FWA,
do you really think that B6 is going to write checks to DL and US for $72M and then turn around and attempt to compete with them on routes that DL and US have far more slots than B6 could dream about?
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Do you realize the whole lunacy of this slot deal? DL and US tried for 2 years to swap slots - which if left alone would have at best required them to compete against other network carriers on their own terms.
2 years later, DL and US receive over $90M from carriers that are dying to grow at LGA and DCA and who are subsidizing the start up costs for DL and US to expand their operations.
And DL and US KNEW all along where the use of the new slots would be targeted - AA. AC. and UA - who DL and US are only too happy to see the low fare carriers attack.
And then DL and US will follow those "low fare carriers" into the same markets previously operated solely by AA, AC, and UA using those low fare carriers own "low fares". (if you can discount much after paying $4-5M for a daily flight. )
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So, DL and US are making a fortune on slots that low fare carriers will use to go after markets currently dominated by DL and US' network competitors - and then DL and US will follow.
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Could you think of a more bizarre "solution" if you tried?