Rumors of US reducing BOS due to WN

[mrman]

http://www.boston.com/business/articles/20..._of_logan_cuts/


US Airways is trying to dispel a rumor circulating among its workforce that the legacy carrier will cut most of its Boston flights by the end of the year in the face of fierce competition from Southwest Airlines Co., which recently said it will fly out of Logan International Airport by the fall.

 

[hp_fa]

I'm not sure that I see US Airways cutting "most of its Boston flights by the end of the year" because of Southwest.

1. Southwest has traditionally operated from non-major airports or has had limited operations from major airports, especially in the Northeast. Examples are Islip and Manchester for serving the New York and Boston areas. The one exception, actually in a Mid-Atlantic state, is BWI and even BWI was a smaller and less restricted airport as far as arrival and departure regulations than DCA.

2. Southwest's normal mode of operation is high frequency in limited markets, and this method of operations has distinct problems in airports that are traditionally subject to ATC and/or weather delays. That is, in part, why Southwest has had an on, off and on again presence at SFO and has a much larger presence in OAK.

3. The last I knew, and this could be out of date, someone in a senior position at Southwest had stated that absent a significant investment in expanding it's support network, Southwest was approaching it's maximum capacity under it's existing infrastructure.

Now I am not suggesting the US Airways may choose to perhaps cut some unprofitable flying, but a large-scale departure from a high revenue east coast city with no good alternate airport (I am not considering BDL or PVD as a good alternatives) seems unlikely.

 

[jimntx]

I'm not sure that I see US Airways cutting "most of its Boston flights by the end of the year" because of Southwest.

1. Southwest has traditionally operated from non-major airports or has had limited operations from major airports, especially in the Northeast. Examples are Islip and Manchester for serving the New York and Boston areas. The one exception, actually in a Mid-Atlantic state, is BWI and even BWI was a smaller and less restricted airport as far as arrival and departure regulations than DCA.

True, but they are running out of "non-major" airports in areas of the country where the population density would support their style of operation. Hence, their moves into LGA and PHL. One of the most fascinating things about WN has always been their corporate flexibility given their size. They have never been a doctrinaire "that's not the way we do things" kind of company.

2. Southwest's normal mode of operation is high frequency in limited markets, and this method of operations has distinct problems in airports that are traditionally subject to ATC and/or weather delays. That is, in part, why Southwest has had an on, off and on again presence at SFO and has a much larger presence in OAK.

There was a time when their operations could be seriously affected by just a few a/c being stuck on the ground due to weather, etc. I don't think that is still the case.

3. The last I knew, and this could be out of date, someone in a senior position at Southwest had stated that absent a significant investment in expanding it's support network, Southwest was approaching it's maximum capacity under it's existing infrastructure.

However, they are constantly evaluating existing markets--do we have too much frequency/capacity here? I know that they have cut back on DAL-STL frequency--not as severely (percentage-wise) as my company, AA. But, they have reduced frequency on this route. That frees up a/c to fly elsewhere.

Now I am not suggesting the US Airways may choose to perhaps cut some unprofitable flying, but a large-scale departure from a high revenue east coast city with no good alternate airport (I am not considering BDL or PVD as a good alternatives) seems unlikely.

One of the reasons that BOS is a high revenue city is lack of choices for the flying public--see also, BOS-PHL fares. I would suspect that this is a route that WN will start serving almost immediately--on the way to/from somewhere else, of course lol.

One thing we all have to keep in mind when competing with WN. It doesn't matter that you and I know that WN is not always the cheapest fare, nor do they make that claim. WN always has a reasonable fare. It is not their fault that translates in the public's mind to the cheapest fare.

And, the new Business Select is sheer marketing genius for the short-haul market. I still would not fly WN for a coast to coast, 5-stop, marathon, but... Recently I was commuting to work in STL from DAL. On a flight at 9:45am, there were maybe 45-50 people on the flight which had originated at HOU. Of the 30 or so passengers that boarded at DAL, at least 15 of them were Business Select travelers in suits with briefcase and laptop in hand. None of them appeared to have much in the way of "personal" stuff. I'm guessing that the majority were going to STL for the day on business and were planning to return to DAL the same day. In the past these people have been the bread-and-butter of the AA flights between DFW and STL. I'm not saying that we have lost them entirely, but I do know that the DFW-STL frequency is now 9 flights/day where it used to be 14.

NEVER underestimate the effect that WN can have on your "sewn up" markets.

 

[Whatnow?]

Let's suash this rumor now......


US Airways says no cuts in Boston flights
PHILADELPHIA INQUIRER STAFF

US Airways said it won't cut flights in Boston when Southwest Airlines begins to fly out of Logan International Airport in the fall.

Philadelphia's dominant airline said a rumor is circulating among its employees that when low-fare carrier Southwest begins flights from Boston, US Airways will reduce flights there.

An anonymous US Airways employee noted in a recent corporate newsletter that the airline tends to "pull out" of a market when "Southwest decides to enter or expand." (That did not happen in 2004 when Southwest began flights out of Philadelphia.)

Southwest's arrival in a market usually forces competitors to cut fares on routes where the carriers compete.

"We want to dispel the notion that we would reduce our schedule or retreat in any way" from Boston, US Airways spokesman Morgan Durrant said.

 

[Travelpro72]

The only thing about WN flying out of Logan that could be a bit of a battle would be PHL-BOS imo. The fares for those doing business certainly are NOT as WN calls "reasonable". Not everyone who's a FF racks up points to go to Rome. IF you travel between that market exclusively and can take WN using their business select, a more reasonable fare, a free drink and priority boarding with an awesome boarding area including power ports and comfortable seating WHY would you go out of your way to choose US? I see WN taking business from US on that route if WN flies it. With all that being said US was stated as being the third busiest out of Logan. You have Jetblue to battle with if they choose to fly Florida routes along with Delta. If anything it will stimulate the markets as WN usually does.

 

[Pacemaker]

US Airways says no cuts in Boston flights

me thinks thou dost protest too much...

 

[nycbusdriver]

They probably won't cut the number of flights. They will just allow Boston to succumb to USAirways' "Littlest Airplane Syndrome," and in a few months it will be mostly express. (Same number of flights, of course.)

 

[SS255]

(That did not happen in 2004 when Southwest began flights out of Philadelphia.)

Instead, GoFares were born!!!

Oddly enough, GoFares were only available on the routes which competed directly with WN!

 

[jimcfs]

Instead, GoFares were born!!!

Oddly enough, GoFares were only available on the routes which competed directly with WN!

CCY did try to expand GoFares, especially into markets connecting thru PIT (especially) and PHL, but they never went anywhere and BloFares stayed.

 

[Dog Wonder]

US Airways says no cuts in Boston flights

me thinks thou dost protest too much...

No cuts were planned in PIT.

Until they happened.

 

[ClueByFour]

CCY did try to expand GoFares, especially into markets connecting thru PIT (especially) and PHL, but they never went anywhere and BloFares stayed.

That's "Blofares (tm)"

We have to see the WN route-map out of BOS before speculating. I do think US will try to defend PHL-BOS, but it's going to cost dearly.

What's left of the mainline route map out of BOS outside of the hubs and LGA/DCA these days?

 

[nycbusdriver]

We have to see the WN route-map out of BOS before speculating. I do think US will try to defend PHL-BOS, but it's going to cost dearly.

Yeah, they'll defend it just like they continue to defend PHL-PIT. Littler airplanes and less frequency. I know SWA is shaking in their boots in anticipation of USAirways' vigorous response.

 

[Travelpro72]

Isn't that the truth. I don't have a big enough rolleyes smiley for that one. WN if they come into the PHL-BOS market may not squash US and make them run but will run their costs through the roof. HUH, like US needs any help in that department. Hey biz travelers.....get ready to have 8 crj's a day between PHL and BOS. That will be US's response.

 

[Whatnow?]

Well, as it stands right now now, the E190's are doing quite a few round trips everyday between PHL/BOS.

 

[jimntx]

No cuts were planned in PIT.

Until they happened.

1. The check is in the mail.
2. This won't hurt, but you might feel a slight pinch.
3. Of course I paid cash for the Mercedes.