Appraisal of Airlines From a Desert Outpost

[usa1]

Whether there are five major carriers by the end of 2012 or four — if American were acquired — this much is certain: by the end of the year, competitive choices will be reduced. All of the major carriers, except Southwest, will be flying schedules that are more dependent than ever on getting the most revenue possible from business travelers on flights that feed into the big hubs where the high-yield international routes lie.

On Monday afternoon, incidentally, Southwest initiated across-the-board fare increases that were quickly matched by most other domestic carriers, according to Rick Seaney, the chief executive of FareCompare.com

Over all, the major airlines plan to continue to cut capacity from domestic markets that don’t generate sufficient revenue, in a strategy to “relocate the assets to the right places that make money,” said Derek Kerr, US Airways’ chief financial officer. Or as Scott Kirby, the president of US Airways, put it, “We’re not focused on market share anymore, and that’s a healthy change for the industry.”

http://www.nytimes.com/2012/03/27/business/on-the-road-us-airways-presents-a-progress-report.html

 

[WorldTraveler]

he doesn't understand the WN model is he thinks he can exclude them from chasing high yield business travelers... they do in fact carry them to their "hubs" even if they don't call them that. The only difference is that they don't have int'l flights at those "hubs" but even that is changing as they pursue first business in Mexico and then later outside the lower 48.
With fuel prices at levels where they are and still climbing, EVERY airline must attract large numbers of business passengers in order to pay for costs that cannot be brought down fast enough.
And WN, like other airlines, is indeed trimming capacity. FL is 15% smaller than it was when it was a standalone airline and WN is not adding enough capacity under the WN brand to make up for all of the FL capacity cuts.

 

[UPNAWAY]

SWA is much more like a legacy today and less like themselves of 15 years ago.

 

[SparrowHawk]

SWA is much more like a legacy today and less like themselves of 15 years ago.

Yeah! I'm a whole lot more like I am now then I was before, Eh?

 

[Phoenix]

http://www.nytimes.com/2012/03/27/business/on-the-road-us-airways-presents-a-progress-report.html

Interesting perspective on the reduction of services due to consolidation. The same argument was made (albeit during a lengthy BoB Crandall Interview) about the reduction of "ubiquity" of service that has greatly diminished to many cities due to deregulation.

 

[Iclubbabyseals]

SWA is much more like a legacy today and less like themselves of 15 years ago.

So, you are excusing the imminent downsizing in PHX? By, blaming, an external factor? Oh my god, you are pathetic, sir. PHX is being artificially being pumped. Reality will soon intrude. Get used to it.

 

[UPNAWAY]

WTF?

 

[Zone5]

So, you are excusing the imminent downsizing in PHX? By, blaming, an external factor? Oh my god, you are pathetic, sir. PHX is being artificially being pumped. Reality will soon intrude. Get used to it.

Over all, the major airlines plan to continue to cut capacity from domestic markets that don’t generate sufficient revenue, in a strategy to “relocate the assets to the right places that make money,” said Derek Kerr, US Airways’ chief financial officer. Or as Scott Kirby, the president of US Airways, put it, “We’re not focused on market share anymore, and that’s a healthy change for the industry.”

If and when more capacity cuts come from "Team Tempe" it will speak volumes about where the money is made at US Airways.


seajay

 

[No Land Green]

If and when more capacity cuts come from "Team Tempe" it will speak volumes about where the money is made at US Airways.


seajay

OK underlined pass, no comment, 3 wire Seajay!!!

 

[fodase]

Over all, the major airlines plan to continue to cut capacity from domestic markets that don’t generate sufficient revenue, in a strategy to “relocate the assets to the right places that make money,” said Derek Kerr, US Airways’ chief financial officer. Or as Scott Kirby, the president of US Airways, put it, “We’re not focused on market share anymore, and that’s a healthy change for the industry.”

If and when more capacity cuts come from "Team Tempe" it will speak volumes about where the money is made at US Airways.


seajay

The only way they can cut is you scabs let them, and I am sure you will.

 

[nycbusdriver]

If and when more capacity cuts come from "Team Tempe" it will speak volumes about where the money is made at US Airways.

Yup! And, US Airways somewhat unexpectedly has been able to put SWA on the defensive in PHL. SWA has done a fair amount of pullback in PHL which is mostly unprecedented for them to do in a US Airways stronghold.

Just like US Airways is kicking their butt in PHX and forcing them to reduce service there, too. (NOT!)

And look at the whoop-### US gave them in LAS!