L
luvn737s
Guest
Southwest looks at city pairs differently. What appears to be point-to-point (DAL-OKC-PHX-SMF) is actually split up long hauls. They find X number of passengers who want to go from DAL to SMF then a certain number from OKC to SMF and PHX-SMF, and likewise with those travelling from OKC to PHX and DAL to PHX. To do this they need an aircraft that has the flexibility to carry large loads betweeen any of these cities and small enough to run a few light loads without losing their shirt. An RJ can't offer that flexibility. If US wants to go point-to-point they better be able to offer enough seats to bring in the cash flow or they'll never be able to get their strategy out of first gear. Also, the RJ's are too expensive for what they are. There are no fixed costs that scale down to the RJ level.
A successful strategy depends on finding out what the traveling public wants and being able to supply large amounts of it. The RJ strategy is more like a cell phone rate plan. Give you a little jet and then convince you that you need a little more and a little more. And how many people are satisfied with their cell phone plans?
A successful strategy depends on finding out what the traveling public wants and being able to supply large amounts of it. The RJ strategy is more like a cell phone rate plan. Give you a little jet and then convince you that you need a little more and a little more. And how many people are satisfied with their cell phone plans?