Air Tran Looking At Usairways Shuttle

[USAirUnited]

Air Trash running the Shuttle, I hope us airways never lives to see that day!

 

[sfb]

The shuttle has been and can remain one of the most profitable routes in the country. It must rely on a large volume of service, high reliability, the use of inexpensive (paid for) equipment and last, but most importantly, extremely high fares.

Why exactly must this service rely on extremely high fares? Southwest manages to offer nearly 30 daily DAL-HOU flights in each direction for a fare that maxes out at $94. They offer over 20 daily LAX-OAK each way at a maximum fare of $99 (and that doesn't even account for all the flights at BUR, SNA, ONT, and SJC). While there are certainly some costs associated with LGA and DCA slots, California isn't exactly a low-cost place to do business. While there are some costs associated with offering a guaranteed seat (like having to be prepared to offer extra sections), they don't justify the price charged for many people.

The shuttle should not be marketed with advance purchase fares. The idea is that someone needs to get between New York and Washington right now and is guaranteed a seat (which requires a standby airplane and crew). It's only real competition would be chartering a plane, and thus it should be priced accordingly.

This, unfortunately for DL and US, is no longer true. When travel time to the airports is included, along with the hassles of clearing security, Acela is a desirable alternative to the Shuttles, especially with the walkup fare being $99. And you can use your cell phone on the train (or even stay connected to the net via a cellular data connection). Plus, there's no 30-minute rule going into DC on the train.

When given the choice of paying about 50% less for a walk-up and giving up the seat guarantee, I suspect that most would choose to give up the seat guarantee.

 

[BoeingBoy]

Good points, sfb. One can see why the train has somewhere around half the market.

On a side note (and since "the use of inexpensive (paid for) equipment" was mentioned.....

In those "Statements & Lists" is a listing of "owned" aircraft and who has secured loans on them - largely EETC's, I think. The interest rates generally vary between 7% and 9%. That makes for some pretty expensive "owned" equipment, especially when most of it is on the ground between 14 & 16 hours per day producing nothing.

Jim

 

[luvn737s]

Eastern was paying betwen 18% and 21% interest on their finaincing for their 757s, which made a bunch of dog-eared DC-9's seem like a bargain.

Of course NYAir's first ad proclaimed "You'll never have to ride the Eastern Shuttle again!"

Buncha yutzs!

 

[Light Years]

Why exactly must this service rely on extremely high fares? Southwest manages to offer nearly 30 daily DAL-HOU flights in each direction for a fare that maxes out at $94. They offer over 20 daily LAX-OAK each way at a maximum fare of $99 (.

[post="196305"][/post]​

Are you really comparing DAL-HOU and LAX-OAK to NYC, DC, and BOS? Completely different type of traveler, different types of markets. Not as much so as in the past, but still a service that gets a premium in one of the busiest corridors for business and politics in the world.

 

[firstamendment]

All it will take is for something to happen on a train and they will be under the same security. I'm surprised they are not already.

[post="196280"][/post]​

The shuttle value is nothing like it use to be, however, I will make a prediction. Despite what our "I am never wrong about anything" "president says, he WILL see attacks on his watch. If Bozo the Bush wins, blood WILL flow in the streets and it more than likely will be on Amtrak, subways, and buses. That may be the only saving grace for the shuttle, unless missles are used on aircraft. I hope I am wrong,but I feel it;s a matter of when and not if.

 

[Heinrich]

The shuttle should not be marketed with advance purchase fares. The idea is that someone needs to get between New York and Washington right now and is guaranteed a seat (which requires a standby airplane and crew). It's only real competition would be chartering a plane, and thus it should be priced accordingly.

[post="196250"][/post]​

Since BOS, DCA , and LGA are focus cities many seats are sold as regular "connecting flights" from other cities.