LAX service suspended?
May 5, 2008, 6:31 pm
#1
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LAX service suspended?
Looks like LAX is no longer appearing on the where we jet page and has been removed from the new service start up section. Probably a good decision with oil over $120/barrel and a lot of competition on the LAX-JFK route.
May 5, 2008, 6:45 pm
#2
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Uh-oh! I didn't realized know that from B6 has been suspended service due to more direct competition with VX, DL, UA, AA. Its should be freed up some aircraft more new routes somewhere else instead of LAX.
May 5, 2008, 6:54 pm
#3
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Of all places to suspend I would think that this would be the last. B6 is letting VX walk over them, though Red does it for VX anyway.
I wonder if this is some malicious scheme, I can just imagine Forest Hills and Burlingame talking and saying in low pitched voices "OK, you stay out of AUS, I'll stay out of LAX. Do we have a deal or will we have to create a fare sale"
Of course that would never happen.
I wonder if this is some malicious scheme, I can just imagine Forest Hills and Burlingame talking and saying in low pitched voices "OK, you stay out of AUS, I'll stay out of LAX. Do we have a deal or will we have to create a fare sale"
Of course that would never happen.
May 5, 2008, 7:13 pm
#5
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New cities cost a lot of money, and B6 was coming into LAX with transcons only, meaning the fares they'd have to charge would be pretty high to make money on the city. They'd need to average ~$250 o/w fares to break even on a 100% LF. That is huge, and I am sure they realize that it is incredibly unlikely, especially given the competition.
While I'm surprised that they pulled the plug on LAX, it isn't completely shocking.
Last edited by sbm12; May 5, 2008 at 7:33 pm Reason: added fare/URL
May 5, 2008, 7:58 pm
#7
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I actually think is a smart to suspend it for now. They have no competition at LGB/BUR/ONT on non-stops to JFK. In this environment, it is not possible to offer $99 specials to gain new customers. Better to conserve cash and see how many legacy carriers will be left at the end of the summer. More opportunities will present themselves once the legacies start to break their loan covenants and ground planes.
May 5, 2008, 8:05 pm
#8
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Yes LAX has been suspended due to fuel costs. However may have aquired additional slots for LGB to make up for the removal of LAX. Look for furthur information in the coming days regarding that.
May 5, 2008, 8:06 pm
#9
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May 5, 2008, 8:56 pm
#10
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May 5, 2008, 9:45 pm
#12
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The opening of the LAX station has been suspended. 
I question the math used in that article to obtain the $35,000 pricetag. Even with the most liberal math, and assuming a hike up to $3.50/gal (and a crew consisting of those highest in seniority), I come up with around $15,000 per flight for just the flight itself. This doesn't account for station rent, landing fees, airports crew... but I think $35,000 is a bit inflated.
Originally Posted by sbm12
New cities cost a lot of money, and B6 was coming into LAX with transcons only, meaning the fares they'd have to charge would be pretty high to make money on the city. They'd need to average ~$250 o/w fares to break even on a 100% LF. That is huge, and I am sure they realize that it is incredibly unlikely, especially given the competition.
Last edited by caphis; May 5, 2008 at 9:56 pm
May 6, 2008, 6:18 am
#13
Join Date: Aug 2006
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http://www.latimes.com/business/la-f...0,101118.story
Have to agree with this move. No reason to bleed further on the transcons. In the coming months with all the capacity reductions there will be plenty of opportunities.
Have to agree with this move. No reason to bleed further on the transcons. In the coming months with all the capacity reductions there will be plenty of opportunities.
May 6, 2008, 6:34 am
#14
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The opening of the LAX station has been suspended.
I question the math used in that article to obtain the $35,000 pricetag. Even with the most liberal math, and assuming a hike up to $3.50/gal (and a crew consisting of those highest in seniority), I come up with around $15,000 per flight for just the flight itself. This doesn't account for station rent, landing fees, airports crew... but I think $35,000 is a bit inflated.
I question the math used in that article to obtain the $35,000 pricetag. Even with the most liberal math, and assuming a hike up to $3.50/gal (and a crew consisting of those highest in seniority), I come up with around $15,000 per flight for just the flight itself. This doesn't account for station rent, landing fees, airports crew... but I think $35,000 is a bit inflated.
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May 6, 2008, 6:42 am
#15
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http://www.latimes.com/business/la-f...0,101118.story
Have to agree with this move. No reason to bleed further on the transcons. In the coming months with all the capacity reductions there will be plenty of opportunities.
Have to agree with this move. No reason to bleed further on the transcons. In the coming months with all the capacity reductions there will be plenty of opportunities.