Wn At Pit

[RowUnderDCA]

Here's my thesis:

WN's entry into PIT is good for U. Here are my assumptions and willdass guesses:

U's costs are within shouting distance of WNs and getting closer.

WN's entry reduces the incremental costs and fully distributed costs per pax of operating out of PIT.

WN's entry forces U to dump past yield management strategies by changing the entire competitive landscape in PIT markets.

U acquires enough large jets to compete with WN head to head on most routes.

U retains a small revenue premium by serving routes with smaller aircraft, including rjs and props to inspire ff loyalty. Maybe even amenities generates some revenue premium.

Markets are stimulated at PIT.

The improved operational and revenue picture at PIT persuades U to take some connectivity pressure of PHL improving the efficiency of PHL's operation, reducing costs there.

Maybe WN wants this? To either kill U or lure it away from over scheduling PHL?

It does seem to me that some carriers live in relative harmony with WN. Is my impression of PHX and DTW incorrect?

Then comes my theories of U leap frogging WN's 90's strategy to become the WN of the 2010's today. Relatively efficient p2p operation BUT with some amenities, connectivity and international service.

And FF programs that DO not provide free trips, but rather are all about upgrades and refundable fares and travel amenities.

 

[wnbubbleboy]

Here's my thesis:

WN's entry into PIT is good for U. Here are my assumptions and willdass guesses:

U's costs are within shouting distance of WNs and getting closer.

WN's entry reduces the incremental costs and fully distributed costs per pax of operating out of PIT.

WN's entry forces U to dump past yield management strategies by changing the entire competitive landscape in PIT markets.

U acquires enough large jets to compete with WN head to head on most routes.

U retains a small revenue premium by serving routes with smaller aircraft, including rjs and props to inspire ff loyalty. Maybe even amenities generates some revenue premium.

Markets are stimulated at PIT.

The improved operational and revenue picture at PIT persuades U to take some connectivity pressure of PHL improving the efficiency of PHL's operation, reducing costs there.

Maybe WN wants this? To either kill U or lure it away from over scheduling PHL?

It does seem to me that some carriers live in relative harmony with WN. Is my impression of PHX and DTW incorrect?

Then comes my theories of U leap frogging WN's 90's strategy to become the WN of the 2010's today. Relatively efficient p2p operation BUT with some amenities, connectivity and international service.

And FF programs that DO not provide free trips, but rather are all about upgrades and refundable fares and travel amenities.

[post="242789"][/post]​

The missing element.......Treating your employees as assets.

 

[tug_slug]

Row I think your forgetting the fact that everytime WN and U went head to head U's Management all but pulled out of that particular market. What's going to happen when (not if but when) WN starts flying into Charlotte, are you going to start a topic stating how this could possibly be beneficial to U?

 

[funguy2]

RowUnderDCA...

I would agree that Southwest stimulating the market COULD be good for US Airways... A rising tide moves all ships theory. However, you make some MAJOR Assumptions...

US Airways CASM within shouting Distance of LUV... This has yet to be demonstrated, and I will personally be impressed if US Airways CASM is within shouting distance of CAL.

LUV lowering the incremental passenger cost... I am not sure that this is true... Over the years, US Airways has dumped 200 or so flights from PIT... That is something which 15 LUV flights/day will not replace. From the landing fee perspective, the airport will still be down 150 flights/day or more (depending on other competitor actions and LUV's schedule). All those US Airways passengers who no longer connect at PIT will not be paying PFC's at $3-4.50 a head to PIT. Even a stimulated PIT will not return to these passenger counts (including connecting passengers) for many years.

US Airways acquires enough large jets to compete head to head... Well, we already know that the opposite is what is actually occuring.

I do think some carriers manage to "live" with Southwest... PHX/LAS for HP, HOU/IAH for CAL, MCO/BWI for AirTran, and Alaska seems competitive with Southwest from PDX and SEA.

I think you are right about strategy. US Airways needs to have reasons why customers would be willing to spend an extra $10 to fly US Airways over Southwest. Alaska, in particular, seems to do ok with this (of course, they have a very lucrative "extras" like intra-Alaska monopoly, Mexico Beach routes, and code-shares with many of the legacies).

 

[flyin2low]

Southwest can carry the $29 Florida trash and US can bring them into the hub for $899.

 

[mweiss]

Southwest can carry the $29 Florida trash and US can bring them into the hub for $899.

[post="242816"][/post]​

Are you serious? :huh: