Southwest And Others Have Pit In Their Sights
- Thread starter orville
- Start date
Just callzem as I seez'um
robbedagain
Veteran
- Oct 13, 2003
- 11,125
- 2,676
it will be interesting to see where jetblue flies to out of pit and if they can make money out of pit
nycbusdriver
Veteran
Of course, PIT will offer SWA and JBLU heavily discounted leases to get them to serve the airport. PIT airport charges U anywhere from $7-$10 per connecting passenger to cover its huge debt; I'll bet SWA and JBLU get the exact same service for $0.50 a head and the airport lets the taxpayers make up the difference. Of course, that little fact will be buried on page 18 of the "Business Section," while "SWA and JBLU to Serve PIT" will be the headline for a week or two.
Regarding the cost-per-passenger in Pittsburgh: Is this a direct charge per passenger; or, as I suspect, the result of total costs divided by total passengers?
If the latter is true, it is no surprise that the cost per passenger in PIT has escalated when you see an entire concourse that was designed to handle 100-200 passenger jets used instead to operate 30-50 passenger turboprops and RJs.
You also can not expect the airport to lower the lease rate on these gates just because the tenant decides to use them inefficiently. It would be like renting a 100 square foot storage space, selling half of your belongings and expecting the storage facility to lower your rate to a 50sf space.
If the latter is true, it is no surprise that the cost per passenger in PIT has escalated when you see an entire concourse that was designed to handle 100-200 passenger jets used instead to operate 30-50 passenger turboprops and RJs.
You also can not expect the airport to lower the lease rate on these gates just because the tenant decides to use them inefficiently. It would be like renting a 100 square foot storage space, selling half of your belongings and expecting the storage facility to lower your rate to a 50sf space.
You suspect correctly. Total costs / Total Passengers. Its not anywhere close to real time, but that's the general jist of it.X-U said:
And there will be no "sweetheart" deals. $0.50 is not anywhere close to realistic. Costs will be close to US Airways, but will be slightly lower. (U afterall is going month-to-month on gates)
ClueByFour
Veteran
- Aug 20, 2002
- 3,566
- 37
It's also worth noting that the new terminal was built to spec for US, who basically threatened to bail without said new terminal 14 years ago.
This is a fact which is often overlooked: US demanded and got what they wanted at PIT, and then used the 11th hour of Chapter 11 to walk away from it.
While PIT might wait for LUV until after they finish US at PHL, the LCCs will come--the O&D is not as bad as some here would lead you to believe (better than CLT, for instance) and would probably go up by 250k boardings/year if people had an incentive not to drive to CAK or CLE.
This is a fact which is often overlooked: US demanded and got what they wanted at PIT, and then used the 11th hour of Chapter 11 to walk away from it.
While PIT might wait for LUV until after they finish US at PHL, the LCCs will come--the O&D is not as bad as some here would lead you to believe (better than CLT, for instance) and would probably go up by 250k boardings/year if people had an incentive not to drive to CAK or CLE.
Yes, airports must offer the same lease rates, landing fees, etc, to all airlines as long as they accept Federal dollars, this is true.
However, airports also have ways around this... Like "service development" grants, airport paid marketing, or tie ins to the local business community (aka AirTran's travel bank system). Not saying PIT has or will do this...
I beleive they have changed their website, but the FLL airport website used to have a banner ad encouraging airlines to start new service... The offer was to any airlines willing to serve FLL-Caracas, they would get certain airport rebates, marketing help, etc. It looks like they have redeveloped their website and removed those ads, but I am sure the airports still have the opportunity to create such offers. Bottom line is that a level playing field is not always guaranteed.
However, airports also have ways around this... Like "service development" grants, airport paid marketing, or tie ins to the local business community (aka AirTran's travel bank system). Not saying PIT has or will do this...
I beleive they have changed their website, but the FLL airport website used to have a banner ad encouraging airlines to start new service... The offer was to any airlines willing to serve FLL-Caracas, they would get certain airport rebates, marketing help, etc. It looks like they have redeveloped their website and removed those ads, but I am sure the airports still have the opportunity to create such offers. Bottom line is that a level playing field is not always guaranteed.
ringmaruf
Veteran
As a matter of fact, US took advantage of FLL's wanting to attract new service, and was given reduced landing fees for the FLL-BDA service for the first year. The route proved successful, and returned this year with more frequency.funguy2 said:
Whatnow?
Veteran
- Nov 4, 2003
- 862
- 8
I think its great for the city of Pittsburgh that some LCC's have their eye on adding flights out of PIT after US scales back, but their level of service WILL NEVER replace what US has had at PIT. It's just not financially possible for any other established carrier to make PIT a hub in todays economy. I think the goal of LCC is to come into a market and steal pax from the major carriers, would that really happen at PIT after US scales back? Is it really possible for that many LCC's to enter the PIT market to compete with each other?
RowUnderDCA
Veteran
- Oct 6, 2002
- 2,123
- 1
That's illegal... or against ACAA's Federal promises. There are limited allowances for marketing and promotional activities for a limited time. But they have to be available to all.nycbusdriver said:
