More like, one reason Southwest's CASM is lower is the single aircraft type. They're also just plain more efficient and more productive. They save quite a bit of money by owning the vast majority of their fleet instead of leasing.
What about it? WN's RASM was still well above its CASM, and they still enjoy pricing power relative to their peers.
What about them? Do you think that employees at Southwest's competitors will gladly accept dramatically lower pay as their employers return to profitability? The "new" US Airways posted one quarterly profit and already the pilots want a bigger slice of the pie!
And everyone else raises fares right along with them because they can't show a profit at the fares being charged by Southwest. Southwest's fuel-excluded CASM is still one of the lowest in the industry, and the absolute lowest when adjustment is made for average stage length.
Well, going from zero to over ten percent market share in a market the size of PIT in a single year is certainly nothing to laugh off. Taking 45% of a formerly monopoly route like PIT-PHL in six months is no small feat. US's daily O&D revenue on PIT-PHL fell from $100K to 75K between 3Q04 and 3Q05.
US Airways can't afford to lose PHL, even if WN is diluting yield on some routes. But then, daily mainline departures on East from PHL have declined from 199 before WN's entry to 152 today.
How much profit does US make on domestic routes? Why would Southwest need to fly internationally if they make money domestically?
Maybe yes, maybe no. But you can't run a business on the assumption that one of your competitors will falter.
sfb, You are just having a difficult time realizing the fact that the rest of the ailine industry is [and is in the process] of being competitive with LUV.
LUV enjoying "pricing powers" relative to their peers ?
I guess thats why they are "enjoying" raising their fares like the rest of their "peers".
Now, you're not suggesting that LUV ran US out of PIT, are you? It's common knowledge that US did not need all the presence in both PIT and PHL. The decision to downsize one or the other airport was LONG over due.
I believe whenever one talks about CASM, the discussion is not complete unless you also include RASM. [Something a LOT of people on here fail to do.)
Your comments on the employees of LUV's competitors is Laughable..Surely you know what a UNION is and what a CONTRACT is ??
The employees of ALL the airlines that have [and are now going thru bankrupcy] have taken extreme pay and benefit cuts. There was nothing "gladly accepted" during the bankrupcy process, Just long term concessions.
Do you actually think the employees of LUV will react any different if and when they are faced with the same situation ?
I did not suggest that LUV should fly international routes.
But if they ever do, It would require larger aircraft, and diminish their one fleet type CASM advantage.
I also do not assume LUV will "falter", unike some that were counting on US to "falter".