Originally Posted by
Pigeye01
Yields were ok, but flying 88 seats in 717s wasn't economical?" True, if you assume YX and WN were competing for the same passengers. That's like lamenting Chipotle losing market share to Bojangles.
BB is a day trader-no long term strategy, only short-term gain. The airline takes his personality, much like WN became successful under Herb and his personality. Would Apple be Apple without Steve Jobs? Well, F9/RAH is F9/RAH because of BB. Business travelers aren't attracted to F9's persona (or lack of FF alliance).
It's funny how the excitement of MKE traffic increases has turned into "turmoil." MKE fares were definitely a race to the bottom. MKE is a great market for loyalty. YX had unmatched loyalty and that's why they were able to make it work, even with 88 seats on a 717. Blame the economy, crack int he sidewalk, whatever. TH and his obsession with "shareholder value" (outdated way to run a company) killed YX.
Yes, and they are:
1. F9 is a, as Knope correctly points out, a bottom feeder.
2. No FF alliance.
3. Uncertain strategy.
4. Passengers aren't paying premium fares and pricing seems to have no discrimination element (which is how airlines maximize revenue/profit).
YX probably was more influenced by one thing more than anything else. Sarbane-Oxley accounting reforms of 2002 thanks to the well known problems with Enron/Tyco/Adelphia/Perigrine Systems and Worldcom. Until then they could write off costs of promotion and even today's expenses until just about forever. Not terribly unlike a ponzi scheme. They looked like they were making money for a long time. Until then.
TH was the only YX employee happy with the ending that only because of a decent payout. Though I'm sure if he's human at all he regrets failing the employees. I'd hate to be haunted with that.
BB hasn't the cash in a world of real world accounting to play the game long with these losses without risking Republic as a whole. It's a hot seat nobody would like to be in. They can't afford to go into markets with the big boys and play fare war. So finding cities not served with fare potential if they can market it or better yet subsidized is the bottom feeding. Yet, every city they abandon due to low loads loses "their" loyal customers.