Originally Posted by
goodeats21
And all these CR2s entering United service are being scooped up as they are exiting the AA fleet, so United is pretty much at the bottom of the comfort barrel here.
I am not sure I buy the "connectivity" argument, especially with the dramatic increase in CR2 flying. I always heard that direct flights provide the bigger yields, as passengers are willing to pay a premium to not connect. So now they are saying that the yield solution lies with increasing connectivity from small markets, making connections through hubs. But that means all routes are exposed to competition. Kirby was quite explicit about the connection competition, where each of the 3 majors is a viable option But they are throwing CR2s at the competition after admitting they are not competitive aircraft and caused book-away in the past. Why would a person choose to be not comfortable, when other option is available?
The whole thing is a circular gibberish. If someone can explain the logic I am missing, it would be appreciated.
Oh, and how many times is re-banking hubs going to be presented as a solution. Haven't we been hearing this for years now?
And I admit being cynical, but when United says they want to increase "asset utilization", I would be willing to bet they are not going to be able to maintain their recent operational gains. As they tighten up turns and keep less slack in the schedule, something is going to give out.
I think we are on the same track here. Doesn't really make sense.
Again, I am not following this. Maybe I am dense (very possible), but how is a definition of a "prime market" different then connection traffic? If someone needs to connect from a valuable small market, and they have the choice of each of the 3 majors, why would they choose the crappy, 1 cabin, no E+, Devil's Chariot?
I read from a Kirby quote (Skift I believe) that he is driving for parity in the traffic between DL/AA/UA with the RJ connectivity plan in the small markets, that means everyones yields will be diluted, not go up. circular nonsense. I don't understand how they are going to take AA's 50 seaters and be at over 2X DL's 50 seater level and be competitive on PRASM let alone margin (less CASM of those costly brutes). That and the circular reference that they plan to get into a fare war at the same time with anyone dropping fares in UA's markets.
Also, isn't the whole genesis of the LCC was that the legacy's maintained such high fares in the connecting markets that the LCC's went to the alternate point to point routes to undercut them? Last time I checked Frontier and WN both have a heck of an aircraft order book. It's like they are in a bubble sometimes. Maybe they feel they don't have a choice after they axed the 73G order.