While PIT is cutback to focus city status, watch out for a new focus city announcement in the coming weeks (probably late August). The new focus city is Ft. Lauderdale. US Airways is already accepeting transfers into their new Miami/Ft. Lauderdale-area crew base and has acquired the gate space. Employees are lip tight on the new expansion, but look for various Northeast and Caribbean destinations, and more than just Saturday-only flights.
And for those of you wondering why US Airways' new CLT-LIR service leaves Liberia before it arrives...
While PIT is cutback to focus city status, watch out for a new focus city announcement in the coming weeks (probably late August). The new focus city is Ft. Lauderdale. US Airways is already accepeting transfers into their new Miami/Ft. Lauderdale-area crew base and has acquired the gate space. Employees are lip tight on the new expansion, but look for various Northeast and Caribbean destinations, and more than just Saturday-only flights.
And for those of you wondering why US Airways' new CLT-LIR service leaves Liberia before it arrives...
Seems like an odd choice for a focus city--FLL is flooded with LCCs. A focus city of FLL seems reasonable if one is aiming to engage in a market share food fight, but seems hard to justify if the goal is to turn a profit.
Seems like an odd choice for a focus city--FLL is flooded with LCCs. A focus city of FLL seems reasonable if one is aiming to engage in a market share food fight, but seems hard to justify if the goal is to turn a profit.
The huge bulk of the flying will not compete with LCCs. In fact, on most of the new routes, US Airways will be the only non-stop carrier. Ft. Lauderdale-Caribbean is extremely profitable, much more so than the already profitable Philadelphia/Charlotte-Caribbean markets. You have huge O&D, a lot of business traffic (South Florida-Grand Cayman is just one example of a major business route in the area), and can run destinations at higher frequency, not to mention open new ones PHL and CLT cannot support (like PAP and POS).
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Quote:
Originally Posted by Miami_Flyer
Good move picking FLL instead of MIA, where your *A partners could feed your flights.
The major Star partners who fly to MIA (I'm thinking LH & UA primarily) already feed US's hubs at PHL and CLT. There's not real incentive to US to focus on Star feed at MIA.
The huge bulk of the flying will not compete with LCCs. In fact, on most of the new routes, US Airways will be the only non-stop carrier. Ft. Lauderdale-Caribbean is extremely profitable, much more so than the already profitable Philadelphia/Charlotte-Caribbean markets. You have huge O&D, a lot of business traffic (South Florida-Grand Cayman is just one example of a major business route in the area), and can run destinations at higher frequency, not to mention open new ones PHL and CLT cannot support (like PAP and POS).
FLL-Caribbean is profitable NOW, but will it still be profitable in five years when its infested with LCC's?
When USAirways couldn't make money out West, they pulled it down and headed East because yields were high and LCC's were few. Unfortunately, the strategy failed because the LCC's eventually came eastward. Now, USAirways can't make money in the East, so they're shifting assets to the Caribbean which has higher yields. But guess what, the LCC's are hot on their trail. So in 3-5 years, how profitable do you really think FLL-Caribbean will be when AA, US, JB, NK are all flying the same routes?
FLL-NYC used to be a very lucrative route. Today, the only airline that makes money on this route is JB and that's only because they have a super low cost structure that US will never have.
USAirways has to learn to compete instead of just running and hiding where they think yields will be high.
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FWIW, AA already uses FLL as a relief terminal, of sorts, to certain destinations where they can take advantage of the huge O&D. They currently fly nonstops to SJU, SDQ, PAP and CCS from FLL. Hopefully US knows that and will plan their routes accordingly...
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There is also great growth in the population north of MIA - everyone from North Miami northward is tired of fighting the traffic down to MIA - I predict FLL growth will percentage-wise greatly outpace that of MIA.
US is trying to liberate MIA/FLL area flyers who are sick of the several concourse he** that is AA's Miami hub. Smart move.
Several Concourse no more starting in about two years, when AA will fly out of one giant concourse - Concourse D. No hassle and easy to use with a train service running from one end to the other.
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Originally Posted by steves
I predict FLL growth will percentage-wise greatly outpace that of MIA.
That is already happening. It is a trend that will continue. However, more recent trends in population growth have focused in Miami's city core, near MIA. That area is currently experiencing the largest housing boom in the county.
Quote:
Originally Posted by Arrzee
FWIW, AA already uses FLL as a relief terminal, of sorts, to certain destinations where they can take advantage of the huge O&D. They currently fly nonstops to SJU, SDQ, PAP and CCS from FLL. Hopefully US knows that and will plan their routes accordingly...
True, and they will stop at nothing to make sure that others don't invade their turf. And they consider FLL to be their turf. They fly to 12 cities - BOS, LGA, DFW, LAX, CCS, SDQ, SJU, NAS, PAP, RDU, ORD, and STL - from FLL and will add more service if they see competitive threats. The rumours for 2005 are new service to SJO, GUA, SFO, and DCA.
FLL-Caribbean is profitable NOW, but will it still be profitable in five years when its infested with LCC's?
When USAirways couldn't make money out West, they pulled it down and headed East because yields were high and LCC's were few. Unfortunately, the strategy failed because the LCC's eventually came eastward. Now, USAirways can't make money in the East, so they're shifting assets to the Caribbean which has higher yields. But guess what, the LCC's are hot on their trail. So in 3-5 years, how profitable do you really think FLL-Caribbean will be when AA, US, JB, NK are all flying the same routes?
FLL-NYC used to be a very lucrative route. Today, the only airline that makes money on this route is JB and that's only because they have a super low cost structure that US will never have.
USAirways has to learn to compete instead of just running and hiding where they think yields will be high.
Good points Connflyer!!! It seems likely that FLL-Caribbean flying may be sustained at higher fares for awhile. However, there is also talk JB will set up a focus city in FLL, and they probably would also fly to the Caribbean. So, the flights may be profitable for awhile, but next thing U know, U may be forced to introduce GOFARES on the routes.
