Can WN, FL, B6, and Other LCC's Use a DH Ch 7 Filing To Their Advantage?
Sep 19, 2005, 9:02 pm
#1
Original Poster
Join Date: Sep 2005
Location: Bainbridge Island, WA
Posts: 36
Can WN, FL, B6, and Other LCC's Use a DH Ch 7 Filing To Their Advantage?
How can these three LCC's, which are bigger, better managed, and better positioned for the future than DH (and that's not hard these days) use a chapter 7 filing by DH to their advantage? This may especially be the case with JetBlue, which has a focus city operation at Dulles, although Southwest and AirTran aren't out of the picture either, especially WN with their near fortress hub at BWI. What were some of DH's best routes? Would JetBlue, Southwest, or AirTran be able to rapidly gain market share on these? JetBlue also seems to be heading towards a major Boston expansion in 2006. If I remember correctly, Boston is one of DH's best routes, is it likely that JetBlue could start that route, even from less business-friendly Dulles? Will the E-190's have a part to play in this? Are there any other lucrative DH routes that AirTran has yet to start serving?
Another important question in all this is what will happen to prices. Since Southwest seems to have a very large percentage of the overall D.C. region market, will fares increase that significantly from DH's suicidal fares? And which airline will loyal DH flyers choose in the end? Will it be steady Southwest, convenient AirTran (they operate from all three airports), or hip JetBlue which offers low fares, and a nice alternative to United when it comes to getting to the West Coast? Your thoughts are much appreciated.
Furthermore, since I'm still new at this, if a moderator feels that this forum is in the wrong place, since it's not completely about DH, then feel free to move it, my feelings will stay intact.
Another important question in all this is what will happen to prices. Since Southwest seems to have a very large percentage of the overall D.C. region market, will fares increase that significantly from DH's suicidal fares? And which airline will loyal DH flyers choose in the end? Will it be steady Southwest, convenient AirTran (they operate from all three airports), or hip JetBlue which offers low fares, and a nice alternative to United when it comes to getting to the West Coast? Your thoughts are much appreciated.
Furthermore, since I'm still new at this, if a moderator feels that this forum is in the wrong place, since it's not completely about DH, then feel free to move it, my feelings will stay intact.
Sep 20, 2005, 7:36 am
#2
Join Date: Feb 2004
Location: NYC
Programs: Amtrak Select Plus, Marriott Platinum, Marriott Lifetime Gold, Hilton Diamond
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Prices will skyrocket.
I'm rooting for DH, but if/when they end operations, I wouldn't mind a large B6 expansion.
B6 currently has only a small number of IAD flights, so I think "focus city" is a stretch.
I'm rooting for DH, but if/when they end operations, I wouldn't mind a large B6 expansion.
B6 currently has only a small number of IAD flights, so I think "focus city" is a stretch.
Sep 20, 2005, 8:16 am
#3
Join Date: Mar 1999
Location: SFO
Programs: United 1K
Posts: 2,264
Independence Air is a wonderful airline and I'll be sad to see them go.
Sep 20, 2005, 8:56 am
#4
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Join Date: Jun 2005
Programs: Continental Gold Elite, United Premier Executive
Posts: 6,766
The loss of DH would not leave an appreciable void for another LCC to fill - any operator that tried to mimic DH's IAD operations, even with more CASM-friendly equipment, would likely find itself taking significant losses and likely engaging in the same destructive pricing & scheduling behaviors to generate decent load factors.
Sep 22, 2005, 1:56 pm
#5
Join Date: Aug 2004
Location: Fairfield County, CT
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Posts: 213
Originally Posted by HeathrowGuy
The loss of DH would not leave an appreciable void for another LCC to fill - any operator that tried to mimic DH's IAD operations, even with more CASM-friendly equipment, would likely find itself taking significant losses and likely engaging in the same destructive pricing & scheduling behaviors to generate decent load factors.
Sep 25, 2005, 2:33 pm
#6
Join Date: Mar 2004
Location: Singapore
Programs: AA Gold, IHG & Marriott Platinum, Hilton Gold
Posts: 1,024
Virgin?
If DH were to fold, it would help ATA slightly. ATA has some Washington National slots and does compete (imperfectly) to/from Chicago, for example. ATA is not in great shape though, so the reverse is likely.
Do you count Ted as an LCC? Obvious beneficiary. Might be a minor positive for Song if they were to take advantage of the situation.
Amtrak would get a few extra passengers.
Airtran might add a frequency to Atlanta, but Airtran (strangely) already serves all three Washington-area airports.
I suppose Hooters could add to its BWI service and send another Washington-area flight down to its mighty Myrtle Beach hub.
How about a Canadian LCC, like Westjet? Westjet doesn't presently serve the Washington area. That'd probably be a good add for them.
I don't think PanAm would be interested unless there's something they can acquire from DH's assets. Somehow PanAm manages to fly 727s from places like Trenton and Portsmouth, New Hampshire. Dulles wouldn't fit their pattern.
Virgin USA is reportedly interested in the Washington, D.C. market as a focus area. They'd serve at least LGA, JFK, and SFO somewhere out of the Washington area, and Dulles seems their most likely choice. If DH is going to get a "white knight," Virgin is the only one I can think of, but Virgin would turn what's left of DH into something very different: an LCC with two (SFO and NYC) different hubs. It might work: run the Airbuses across country (range?) and base the regional jets in each hub. Virgin would give Independence three things it doesn't have: cash, strong brand identity, and international connections. Virgin has said it doesn't want to just buy an existing, struggling airline and wants to build one from scratch, but I could see how Independence could be the exception that proves that rule.
USA3000 already serves Baltimore, and that's probably enough for them.
TransMerdian could expand a bit at Dulles.
Do you count Ted as an LCC? Obvious beneficiary. Might be a minor positive for Song if they were to take advantage of the situation.
Amtrak would get a few extra passengers.
Airtran might add a frequency to Atlanta, but Airtran (strangely) already serves all three Washington-area airports.
I suppose Hooters could add to its BWI service and send another Washington-area flight down to its mighty Myrtle Beach hub.
How about a Canadian LCC, like Westjet? Westjet doesn't presently serve the Washington area. That'd probably be a good add for them.
I don't think PanAm would be interested unless there's something they can acquire from DH's assets. Somehow PanAm manages to fly 727s from places like Trenton and Portsmouth, New Hampshire. Dulles wouldn't fit their pattern.
Virgin USA is reportedly interested in the Washington, D.C. market as a focus area. They'd serve at least LGA, JFK, and SFO somewhere out of the Washington area, and Dulles seems their most likely choice. If DH is going to get a "white knight," Virgin is the only one I can think of, but Virgin would turn what's left of DH into something very different: an LCC with two (SFO and NYC) different hubs. It might work: run the Airbuses across country (range?) and base the regional jets in each hub. Virgin would give Independence three things it doesn't have: cash, strong brand identity, and international connections. Virgin has said it doesn't want to just buy an existing, struggling airline and wants to build one from scratch, but I could see how Independence could be the exception that proves that rule.
USA3000 already serves Baltimore, and that's probably enough for them.
TransMerdian could expand a bit at Dulles.