AirTran Airways A+ Rewards - FL turns up the heat in MKE, Skywest deal...

Fresh off the press...

http://www.jsonline.com/business/69090752.html

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.zhtml?c=201565&p=irol-newsArticle&ID=1350983&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.

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.

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.

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.zhtml?c=201565&p=irol-newsArticle&ID=1350983&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?

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.

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.

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.

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...

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

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.

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.

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.

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.

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.

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.

Skywest just posted great 3Q earnings,they must know what they are doing.

More likely RJET is jealous of Skywest ;)

Is that become AirTran JetConnect Express?

Let's not sugar coat this. AirTran is breaking faith on the marketing messages that they have sent ever since they stopped the JetConnect service a few years ago. On AirTran, you had instead first class, XM radio and now wi-fi on every flight to everywhere.

And now you don't again. You have asterisks instead.

For all the talk about the SkyWest brand, when you go to their website and press the button for this service, it just takes you to the AirTran website. I would say a large minority of my "normal" commuter flights on legacy carriers are now on planes with interiors and people wearing uniforms that are branded only by the commuter carrier. I don't see how this is special or different from the standpoint of the customer, except that if there is liability, AirTran might try to somehow bail on me (or my heirs) a bit quicker that Delta or United might be able to.

I've always thought a feeder operation at any/all of FL's hubs/focus cities was a smart idea, with the right a/c of course. It would allow them access to smaller markets - better saturation in a given region, and bring sane airfares to these markets strangled by scant competition and high fares.

I've always thought a feeder operation at any/all of FL's hubs/focus cities was a smart idea, with the right a/c of course. It would allow them access to smaller markets - better saturation in a given region, and bring sane airfares to these markets strangled by scant competition and high fares.

I agree. It's definitely an experiment and may not work out at all. But you have to give them credit for trying to make it work.

Here's some perspective:

Look back at what happened when FL was trying to acquire YX back in 2007. Many people on this board commented that FL should simply leave YX alone and just grow organically in MKE. Well, that's exactly what they did. They went back to the drawing board and identified some route opportunities out of MKE. They acted by adding that service.

More recently, some armchair CEO's said FL's small hub at MKE won't work because there is not enough feed and they need to get more flyers into the network from the midwest/upper midwest. Well, that's exactly what they're doing via the SkyWest agreement. This isn't a bad thing to try if you are trying to build a small hub. Yes, it's CRJ service, but it's still an option that might work. After all, YX used crappy CRJ's fairly effectively over the past couple of years.

Of course, AirTran isn't making these moves because they saw a few people on message board making the case. But it appears that they are still serious about building this hub. They are not ready to back down and are instead ready to fight to earn this business.

I guess what I'm trying to say is, whether you agree with FL or not, you've gotta give them credit for trying to make MKE work. It will be fascinating to see how how all of this, and all of MKE, turns out in the next year or two.

Speaking of which, when 2009 began, many of us thought that there would have been a shake-out at MKE by the end of 2009. Well, it hasn't happened yet. Now, some are saying that 2010 will indeed be the "year of decision" at MKE. We'll see...

At the very least, speaking as an MKE-based flyer, this is a fascinating ride to be on right now. I hope it lasts.

At the very least, speaking as an MKE-based flyer, this is a fascinating ride to be on right now. I hope it lasts.

+1

I agree. It's definitely an experiment and may not work out at all. But you have to give them credit for trying to make it work.

Here's some perspective:

Look back at what happened when FL was trying to acquire YX back in 2007. Many people on this board commented that FL should simply leave YX alone and just grow organically in MKE. Well, that's exactly what they did. They went back to the drawing board and identified some route opportunities out of MKE. They acted by adding that service.

More recently, some armchair CEO's said FL's small hub at MKE won't work because there is not enough feed and they need to get more flyers into the network from the midwest/upper midwest. Well, that's exactly what they're doing via the SkyWest agreement. This isn't a bad thing to try if you are trying to build a small hub. Yes, it's CRJ service, but it's still an option that might work. After all, YX used crappy CRJ's fairly effectively over the past couple of years.

Of course, AirTran isn't making these moves because they saw a few people on message board making the case. But it appears that they are still serious about building this hub. They are not ready to back down and are instead ready to fight to earn this business.

I guess what I'm trying to say is, whether you agree with FL or not, you've gotta give them credit for trying to make MKE work. It will be fascinating to see how how all of this, and all of MKE, turns out in the next year or two.

Speaking of which, when 2009 began, many of us thought that there would have been a shake-out at MKE by the end of 2009. Well, it hasn't happened yet. Now, some are saying that 2010 will indeed be the "year of decision" at MKE. We'll see...

At the very least, speaking as an MKE-based flyer, this is a fascinating ride to be on right now. I hope it lasts.

Great post! I'd like to add something to the discussion... When AirTran was trying to merge with Midwest, I believe they were going to keep flying the small markets with regional jets. So you can say that AirTran is growing organically the way they envisioned a merger with Midwest. It's just happening in stages, not all at once if the merger with Midwest would have happened.

At the very least, speaking as an MKE-based flyer, this is a fascinating ride to be on right now. I hope it lasts.

I'll second that!

Great post, newsmanhoss^ While I strongly believe this whole experiment with the regional jets will flop, AirTran does deserve credit for thinking outside the box on this one.

Hopefully this MKE roller coaster ride will continue for awhile because I'm certainly enjoying it.