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Old Nov 4, 09, 11:15 am   #1
 
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FL turns up the heat in MKE, Skywest deal...

Fresh off the press...

http://www.jsonline.com/business/69090752.html
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Old Nov 4, 09, 12:21 pm   #2
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DFW is a good option for AirTran to add via mainline service. PIT, IND and STL lose mainline service, which is definitely a smart move from a load standpoint at least. It's a way to right size bleeding markets to focus on other routes that have a better chance of making money.

Interesting that they are starting the new SkyWest service in the dead of winter.

Here is the official release:

http://pressroom.airtran.com/phoenix...983&highlight=

Interesting that they are only calling Milwaukee a "focus city" rather than an actual hub.

These changes dilute the FL product in MKE a little bit, since there will be no XM radio, WiFi, or business class.

Perhaps that's why these planes will be marketed as SkyWest, rather than AirTran. This is a change from the JetConnect (operated by Air Wisconsin) that AirTran experimented with 5 or so years ago.

Will elites have any benefits at all on the SkyWest planes?

Anyway, it shows that AirTran has not yet decided to retreat in MKE. With the announced service, there will be a peak of 56 daily departures from MKE. Not too shabby, and probably the biggest they've ever done outside of ATL and MCO (not sure about BWI).

I'm sure Knope will have a lot more analysis.
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Old Nov 4, 09, 7:38 pm   #3
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Skywest is a decent carrier, however the fact that they're running these routes with CRJ200's (aka the Devil's Charriot) doesn't make these flights particularly attractive.
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Old Nov 4, 09, 7:59 pm   #4
 
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Devil's chariot! I like it. But, STL, DSM, and PIT are ~60 minute flying time. IND is only ~30. I'm no CR2 fan, but they're tolerable for flights of an hour or less.
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Old Nov 4, 09, 8:30 pm   #5
 
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Quote:
Originally Posted by newsmanhoss View Post
DFW is a good option for AirTran to add via mainline service. PIT, IND and STL lose mainline service, which is definitely a smart move from a load standpoint at least. It's a way to right size bleeding markets to focus on other routes that have a better chance of making money.

Interesting that they are starting the new SkyWest service in the dead of winter.

Here is the official release:

http://pressroom.airtran.com/phoenix...983&highlight=

Interesting that they are only calling Milwaukee a "focus city" rather than an actual hub.

These changes dilute the FL product in MKE a little bit, since there will be no XM radio, WiFi, or business class.

Perhaps that's why these planes will be marketed as SkyWest, rather than AirTran. This is a change from the JetConnect (operated by Air Wisconsin) that AirTran experimented with 5 or so years ago.

Will elites have any benefits at all on the SkyWest planes?

Anyway, it shows that AirTran has not yet decided to retreat in MKE. With the announced service, there will be a peak of 56 daily departures from MKE. Not too shabby, and probably the biggest they've ever done outside of ATL and MCO (not sure about BWI).

I'm sure Knope will have a lot more analysis.
Do you think that these flights will last?
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Old Nov 4, 09, 8:49 pm   #6
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Quote:
Originally Posted by mizzou65201 View Post
Devil's chariot! I like it. But, STL, DSM, and PIT are ~60 minute flying time. IND is only ~30. I'm no CR2 fan, but they're tolerable for flights of an hour or less.
Not for me and I'm average height and weight. I fly to OMA and IND from Milwaukee quite often. The flights to Indy, which are closer to an hour, may be short but they still suck on a CRJ 200. If the seat is not open next to you it feels like a 5hr flight. I am glad I don't have to be on one of those again to those cities. Bad choice of aircraft for AirTran, in my opinion.
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Old Nov 4, 09, 9:16 pm   #7
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Originally Posted by Tim34 View Post
Do you think that these flights will last?
I don't think they will get enough O&D passengers, so the success of these flights depend on how many passengers will choose to connect in MKE rather than ORD/MSP/DTW, etc.

I still don't know that they'll last, though. This is a new arrangement, since SkyWest is operating them on a somewhat standalone basis, they might have to bail if not enough money is being made. It will likely be SkyWest's call whether to bail on any of these routes...FL will play a smaller role than in a typical regional airline relationship.
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Old Nov 4, 09, 9:18 pm   #8
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Originally Posted by 8C4IOW View Post
Not for me and I'm average height and weight. I fly to OMA and IND from Milwaukee quite often. The flights to Indy, which are closer to an hour, may be short but they still suck on a CRJ 200. If the seat is not open next to you it feels like a 5hr flight. I am glad I don't have to be on one of those again to those cities. Bad choice of aircraft for AirTran, in my opinion.
I don't think there was any choice on the type of aircraft. SkyWest had no home for these planes...I think they approached FL about this deal. Better to have them fly at a marginal loss than not produce any cash flow at all.
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Old Nov 4, 09, 9:20 pm   #9
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Quote:
Originally Posted by mizzou65201 View Post
Devil's chariot! I like it. But, STL, DSM, and PIT are ~60 minute flying time. IND is only ~30. I'm no CR2 fan, but they're tolerable for flights of an hour or less.
MKE-ORD is about all the further that they should be used for...
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Old Nov 4, 09, 9:22 pm   #10
 
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Quote:
Originally Posted by newsmanhoss View Post
I don't think they will get enough O&D passengers, so the success of these flights depend on how many passengers will choose to connect in MKE rather than ORD/MSP/DTW, etc.

I still don't know that they'll last, though. This is a new arrangement, since SkyWest is operating them on a somewhat standalone basis, they might have to bail if not enough money is being made. It will likely be SkyWest's call whether to bail on any of these routes...FL will play a smaller role than in a typical regional airline relationship.
The fact that FL is protecting themselves a bit is smart. We will see, I wish them luck
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Old Nov 4, 09, 9:39 pm   #11
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Quote:
Originally Posted by newsmanhoss View Post
I don't think there was any choice on the type of aircraft. SkyWest had no home for these planes...I think they approached FL about this deal. Better to have them fly at a marginal loss than not produce any cash flow at all.
I understand the situation but not the execution. It seems they are being reactive and not proactive. Is a better strategy to pull poor performing routes and increase frequencies to higher yielding routes? Or add new destinations? I don't know the answer and I am unsure the new agreement is the best strategy to create revenue for either Skywest or AirTran for reasons you have stated:
I still don't know that they'll last, though. This is a new arrangement, since SkyWest is operating them on a somewhat standalone basis, they might have to bail if not enough money is being made. It will likely be SkyWest's call whether to bail on any of these routes...FL will play a smaller role than in a typical regional airline relationship.
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Old Nov 4, 09, 10:25 pm   #12
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I did a random spot check to see how some of these fares are looking (one-way fares) on the new routes:

SkyWest:
MKE-DSM $99
MKE-STL $45
MKE-IND $44
MKE-PIT $54
MKE-OMA $64

AirTran:
MKE-DFW $119
MKE-DCA $74


There's something screwy with the booking engine on FL's website, because I can't select a trip from between MKE and CAK.

Weird.
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Old Nov 5, 09, 11:26 am   #13
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generally regionals are paid per flight, regardless of how many pax fly on them.
SkyWest is fairly insulated from losses because of this. They also won't have to market the flights, that's up to AirTran.
Still though, the CRJ200... ugh. The EMB120 would be a more comfortable plane, not necessarily the most enjoyable, but more comfortable.
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Old Nov 5, 09, 2:51 pm   #14
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Originally Posted by WIRunner View Post
generally regionals are paid per flight, regardless of how many pax fly on them.
SkyWest is fairly insulated from losses because of this. They also won't have to market the flights, that's up to AirTran.
Still though, the CRJ200... ugh. The EMB120 would be a more comfortable plane, not necessarily the most enjoyable, but more comfortable.
I believe this arrangement is unlike the previous regional set-ups. In this case, SkyWest is has the biggest burden, because they are handling the revenue management. AirTran is just the booking agent and allowing connections into their larger MKE network.

AirTran is only splitting the passenger revenue...they are not paying SkyWest for each flight.
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Old Nov 5, 09, 3:12 pm   #15
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I just re-read the article. As well at the one that was on USA Today. SkyWest will be operating under its own brand. I can't see how this could be good for SkyWest... unless they're jealous of Republic.
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