Us Airways & Industry Analysis
- Thread starter USA320Pilot
- Start date
I am speaking of replacing them with another UNION. One that stands up for its members. One that would tell the company that if all groups can not be treated fairly, No group would get a T/A. thats what I speak of when I say the IAM has no idea of how to build solidarity. Do YOU?
SEA-GEG: Shorter flights than PHL-PIT. GEG is certainly a smaller city than PIT.
SEA-GEG has 3x more passengers per day than PHL-PIT. The average fares are 1/3 less on SEA-GEG than PHL-PIT. AS has about 68% marketshare, WN 31%.
Moral of the story? WN can be fought and contained.
And traffic on the route will go waaaay up.
SEA-GEG has 3x more passengers per day than PHL-PIT. The average fares are 1/3 less on SEA-GEG than PHL-PIT. AS has about 68% marketshare, WN 31%.
Moral of the story? WN can be fought and contained.
And traffic on the route will go waaaay up.
RowUnderDCA
Veteran
- Oct 6, 2002
- 2,123
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whlinder said:
I agree.
wwtraveler99
Member
- Jan 31, 2003
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Does anyone have hard DOT number on the PHL-PIT route. Is the O/D really that good?
If anyone has the numbers please post.
If anyone has the numbers please post.
wwtraveler99 said:
This is from 4th quarter 03, so it is a bit old, but I haven't downloaded any recently and have this saved in Excel where I can quickly find it:
Origin Destination Distance Pax/day avg fare
Philadelphia, PA Pittsburgh, PA 267 450 256.66
lrg cxr mktshare lrg cxr avg fare lowest avg fare cxr mktshare
US 90.12 258.72 UA 9.1
lowest cxr avg fare
232.63
wwtraveler99
Member
- Jan 31, 2003
- 94
- 0
whlinder said:
Thank. I thoought the number would have been higher than this. How many times does US serve phl-pit?
US Airways and Industry Analysis, by funguy2
(I'll try not be be as verbose as USA320Pilot.)
US Airways:
~ Still has a hub at PIT (with turboprop service to places like BUF, MDT, SYR, ABE, CMH, don't buy this "focus city" nonsense. Real focus cities don't have connection focus, but have only service to large O&D markets like BOS, LGA, DCA, LAX, etc. The difference between a hub and a focus city is that a hub needs spokes... like BUF, MDT, SYR, ABE, CMH, etc)
~ Still has 2 aircraft for every mission from the A330/B767 to the DH8/SF3.
~ Still waiting for the Transformation Plan schedule next month.
~ Still trying to run from LCC's (i.e. Caribbean expansion) rather than look at the fundamental problems (i.e. horrible fleet mix)
~ Still cannot lower unit costs significantly despite 2 bankrupcies and 2 rounds of concessions. Maybe Q404 will improve with the 2nd BK in full swing... I'll wait and see.
~ Still not properly staffed such that a normal weather disturbance creates a baggage mess and media nightmare.
~ Still no consistent marketing image... Is this the businessman's airline like something called "Dividend Miles" might suggest, or is the Gen X'er's airline led by "Seth" (Maybe the alliance should be renamed "Ted and Seth's Bankrupcy Adventure")
~ Cannot reach a concentual cost-cutting agreement with IAM, which somehow throws a monkey-wrench (no pun intended) into all the other cost-savings (primarily from other labor groups)
The industry:
~ Worsening RASM trends as noted by Continental and US Airways
~ Oil prices no longer at record highs, but still around 25-30% higher than last year
~ Delta's new fare structure, and matches from other legacies ensure a bloody 1Q05 and guarantee that RASM will not improve in the short term
~ Southwest, the king of LCC's announces service to PIT, which guarantees yield reductions (although increases in traffic) in some of the "focus city" (or hub as it really is) O&D markets like PIT-LAX, PIT-MCO, PIT-BWI, PIT-PHL, PIT-MDW/ORD.
~ jetBlue to announce new routes from Boston tomorrow, according to Neeleman yesterday
~ AirTran, having lost its bid for ATA, must go back to its old business plan of stealing traffic from US Airways and Delta
~ Independence Air in trouble, but still depressing yields across the east coast, and particularly to the DC area
(I'll try not be be as verbose as USA320Pilot.)
US Airways:
~ Still has a hub at PIT (with turboprop service to places like BUF, MDT, SYR, ABE, CMH, don't buy this "focus city" nonsense. Real focus cities don't have connection focus, but have only service to large O&D markets like BOS, LGA, DCA, LAX, etc. The difference between a hub and a focus city is that a hub needs spokes... like BUF, MDT, SYR, ABE, CMH, etc)
~ Still has 2 aircraft for every mission from the A330/B767 to the DH8/SF3.
~ Still waiting for the Transformation Plan schedule next month.
~ Still trying to run from LCC's (i.e. Caribbean expansion) rather than look at the fundamental problems (i.e. horrible fleet mix)
~ Still cannot lower unit costs significantly despite 2 bankrupcies and 2 rounds of concessions. Maybe Q404 will improve with the 2nd BK in full swing... I'll wait and see.
~ Still not properly staffed such that a normal weather disturbance creates a baggage mess and media nightmare.
~ Still no consistent marketing image... Is this the businessman's airline like something called "Dividend Miles" might suggest, or is the Gen X'er's airline led by "Seth" (Maybe the alliance should be renamed "Ted and Seth's Bankrupcy Adventure")
~ Cannot reach a concentual cost-cutting agreement with IAM, which somehow throws a monkey-wrench (no pun intended) into all the other cost-savings (primarily from other labor groups)
The industry:
~ Worsening RASM trends as noted by Continental and US Airways
~ Oil prices no longer at record highs, but still around 25-30% higher than last year
~ Delta's new fare structure, and matches from other legacies ensure a bloody 1Q05 and guarantee that RASM will not improve in the short term
~ Southwest, the king of LCC's announces service to PIT, which guarantees yield reductions (although increases in traffic) in some of the "focus city" (or hub as it really is) O&D markets like PIT-LAX, PIT-MCO, PIT-BWI, PIT-PHL, PIT-MDW/ORD.
~ jetBlue to announce new routes from Boston tomorrow, according to Neeleman yesterday
~ AirTran, having lost its bid for ATA, must go back to its old business plan of stealing traffic from US Airways and Delta
~ Independence Air in trouble, but still depressing yields across the east coast, and particularly to the DC area
We have come a long way in half a years time, and much farther than so so many would have given us credit for.
We have full agreements now with 4/5 unions, and the remaining union's members will still be working, and get to vote upon thier future rather than walking and closing the doors like so so many have said would happen.
The tough issues of retiree costs and pensions have been settled now as well.
We have been told a POR is coming soon, in about a month. While others languish in Bankruptcy, we are getting done what needs to be done, and moving on out.
The ATSB, GE, Embraer, BoA, and Bombardier have all come to agreements with the company, and support our effort/future.
Is it a perfect picture, has it been an easy road, NO...!
But, we have come a long way, and despite the negative publicity, depsite the harsh negotiating enviorment, despite the looming competitive threat we are still moving forward.
Doubt all you want, but as one who witnessed the CAL turnaround, and as one who has studied both the Valujet/AirTran and AWA turnarounds... Things were just as or more dark for them before it got better.
We still control our future, and can make past these tough times into better ones, just like those other companies.
So yeah, we have a real challenge before us, but if it were so easy we would not be in the situation we are in right now anyways.
So wait and see what happens, you might be surprised.
We have full agreements now with 4/5 unions, and the remaining union's members will still be working, and get to vote upon thier future rather than walking and closing the doors like so so many have said would happen.
The tough issues of retiree costs and pensions have been settled now as well.
We have been told a POR is coming soon, in about a month. While others languish in Bankruptcy, we are getting done what needs to be done, and moving on out.
The ATSB, GE, Embraer, BoA, and Bombardier have all come to agreements with the company, and support our effort/future.
Is it a perfect picture, has it been an easy road, NO...!
But, we have come a long way, and despite the negative publicity, depsite the harsh negotiating enviorment, despite the looming competitive threat we are still moving forward.
Doubt all you want, but as one who witnessed the CAL turnaround, and as one who has studied both the Valujet/AirTran and AWA turnarounds... Things were just as or more dark for them before it got better.
We still control our future, and can make past these tough times into better ones, just like those other companies.
So yeah, we have a real challenge before us, but if it were so easy we would not be in the situation we are in right now anyways.
So wait and see what happens, you might be surprised.
Agreed with most points except:
IMHO, a focus city is merely a smaller hub. Nothing wrong with that. Cutting down PIT was a big mistake regardless of the label.
1) It is expensive to dump a whole fleet type. While this isn't a scientific analysis, consider that UA and US dumped entire fleets (737-200/727 and DC-9/F-100, respectively), while AA, NW, CO, DL and WN gradually retire type fleets (or sub-types in the case of WN). UA and US are in perpetual bankrupcty while no one else is. Hmmm...
2) The DH8, SF3, etc. are not operated by US Airways. If it weren't for the Express carriers (wholly owned or contract), I'm sure that US Airways would have gone out of business by now.
Unit costs are lower but revenue is lower as well.
UA and US are far too large to be a niche carrier. Even Southwest appeals to both business and leisure travelers. AA, CO, NW and DL have First Class upgrades for business travelers and LCC-matching cheap fares for the backpacker.
funguy2 said:
IMHO, a focus city is merely a smaller hub. Nothing wrong with that. Cutting down PIT was a big mistake regardless of the label.
1) It is expensive to dump a whole fleet type. While this isn't a scientific analysis, consider that UA and US dumped entire fleets (737-200/727 and DC-9/F-100, respectively), while AA, NW, CO, DL and WN gradually retire type fleets (or sub-types in the case of WN). UA and US are in perpetual bankrupcty while no one else is. Hmmm...
2) The DH8, SF3, etc. are not operated by US Airways. If it weren't for the Express carriers (wholly owned or contract), I'm sure that US Airways would have gone out of business by now.
Unit costs are lower but revenue is lower as well.
UA and US are far too large to be a niche carrier. Even Southwest appeals to both business and leisure travelers. AA, CO, NW and DL have First Class upgrades for business travelers and LCC-matching cheap fares for the backpacker.
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