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Thread: Why not SLC?
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Old Sep 15, 2005, 9:21 am
  #13  
formeraa
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Join Date: Jul 2001
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Originally Posted by RASMguy
The fares are comparable to the Bay area, but the market size is small (a volume problem). Although the fares are running in the $200s, it doesn't mean that is what the markets average fare is, which is actually around $80 each way. Since the market is thin, AS has to make money on fare quality as opposed to pax volume. The fare is too low and the market too small to work with AS current cost structure.

The DL code makes the market much more attractive and given the desire to grow SEA, I don't think SLC is unreasonable.
To get the true sense of the fares paid, I believe that you need to look at the Southwest sale fares. So, wait until WN's next big systemwide sale and look at the lowest fare to see what people are truly paying.

That will probably provide an explanation of why AS isn't in the market. In addition, there are plenty of flights right now on DL and WN. That being said, if DL shrinks in bankruptcy, I could see an opportunity for AS,
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