Gary Kelly: AirTran absorption to be completed in 2014
#16
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,192
Under the current scheme, if you buy WGA (cheap) fares and redeem for same, it's 10% back. If A+, 20%, If A-, 12.5%. Watch for bonuses.
There are ways to generate large amounts of points in CC/hotel programs and transfer in. This is in fact probably the best deal.
#17
Join Date: Jan 2002
Location: Atlanta, GA
Programs: DL DM & 5MM, WN
Posts: 1,451
Echoing Legal Tender, how is this absorption going to work with 30+ 717s still around at the end of 2014 ? At merger time, the 717 was a welcome addition to the fleet, a press release showed it painted in SWA livery. Then it was a pariah.
I really don't care about the plane itself, but I definitely get the feeling a big cut back is coming in ATL. There is no real attempt underway to introduce Southwest to the core routes that AirTran flies, even when the destinations are big points in the Southwest network. Business Class seems wide open to buy tickets, usually at full fares 20% below rival Delta fares, and often leaves with empty seats. Neither DL or SWA seem to care about a pricing situation that would not have existed two years ago. An ominous sign.
Every day at the connecting times, you see 6-8+ 717s scattered around the gate areas. How can this be absorbed in twelve months? The 737 conversions can't do that -- they are absorbing their own capacity!
I really don't care about the plane itself, but I definitely get the feeling a big cut back is coming in ATL. There is no real attempt underway to introduce Southwest to the core routes that AirTran flies, even when the destinations are big points in the Southwest network. Business Class seems wide open to buy tickets, usually at full fares 20% below rival Delta fares, and often leaves with empty seats. Neither DL or SWA seem to care about a pricing situation that would not have existed two years ago. An ominous sign.
Every day at the connecting times, you see 6-8+ 717s scattered around the gate areas. How can this be absorbed in twelve months? The 737 conversions can't do that -- they are absorbing their own capacity!
#18
Join Date: Sep 2010
Programs: Avis Preferred Plus
Posts: 622
With WN, there is no "money's worth." Points are worth a flat 1/60 of a dollar, soon to be 1/70. So if you see a $59 fare, redeem a few points, unless you need status points. For an expensive long trip, look to legacy redemptions. It gives you more flexibility when you can choose the program to redeem in.
Under the current scheme, if you buy WGA (cheap) fares and redeem for same, it's 10% back. If A+, 20%, If A-, 12.5%. Watch for bonuses.
There are ways to generate large amounts of points in CC/hotel programs and transfer in. This is in fact probably the best deal.
Under the current scheme, if you buy WGA (cheap) fares and redeem for same, it's 10% back. If A+, 20%, If A-, 12.5%. Watch for bonuses.
There are ways to generate large amounts of points in CC/hotel programs and transfer in. This is in fact probably the best deal.
Considering my domestic flights are so low mileage (most of my trips are from ATL to BOS, HOU, PBI, PHL type flights), and I make about 30-40 domestic one ways a year, and 1 or 2 international RTs a year, if I want to go with Delta for international , I might have a shot at GOLD if I get their platinum credit card. Silver aint worth much in ATL. But I like trying different airlines internationally, so I gotta just forget the whole loyalty thing and just go with whatever I want domestically. I got no shot at A List preferred(50 one ways), so I don't know if A List is enough to get me an exit row seat most of the time.
Last edited by saneman; Dec 21, 2013 at 1:14 pm
#19
Suspended
Join Date: Nov 2010
Posts: 1,677
Booked MKE-DEN just last night. I will never fly WN, only when no other choice. It's sort of like O%%%-care. Your forced to pay for something you don't really want.
Other than that, I would like to say
Helloooooooooooo Delta. They have a good product and what seems to be a good upgrade policy (which even earns skypesos, no less). That has pretty much been my routine with FL all these years.
Surprised - only 1 WN marketing dep. rep so far in this thread.
Other than that, I would like to say
Helloooooooooooo Delta. They have a good product and what seems to be a good upgrade policy (which even earns skypesos, no less). That has pretty much been my routine with FL all these years.
Surprised - only 1 WN marketing dep. rep so far in this thread.
#20
Join Date: Dec 2006
Location: ORD
Programs: AA EXP,2MM, DL Gold,Starwood PLT
Posts: 3,876
Nope. End of 2015 for deliveries to DL. But WN has said they will take them all out the fleet by 2014 so they will just sit on them and maintain the original delivery schedule to DL. This has been well reported in recent days. Both DL and WN have made public announcements on this.
#21
Join Date: Dec 2006
Location: ORD
Programs: AA EXP,2MM, DL Gold,Starwood PLT
Posts: 3,876
Echoing Legal Tender, how is this absorption going to work with 30+ 717s still around at the end of 2014 ? At merger time, the 717 was a welcome addition to the fleet, a press release showed it painted in SWA livery. Then it was a pariah.
I really don't care about the plane itself, but I definitely get the feeling a big cut back is coming in ATL. There is no real attempt underway to introduce Southwest to the core routes that AirTran flies, even when the destinations are big points in the Southwest network. Business Class seems wide open to buy tickets, usually at full fares 20% below rival Delta fares, and often leaves with empty seats. Neither DL or SWA seem to care about a pricing situation that would not have existed two years ago. An ominous sign.
Every day at the connecting times, you see 6-8+ 717s scattered around the gate areas. How can this be absorbed in twelve months? The 737 conversions can't do that -- they are absorbing their own capacity!
I really don't care about the plane itself, but I definitely get the feeling a big cut back is coming in ATL. There is no real attempt underway to introduce Southwest to the core routes that AirTran flies, even when the destinations are big points in the Southwest network. Business Class seems wide open to buy tickets, usually at full fares 20% below rival Delta fares, and often leaves with empty seats. Neither DL or SWA seem to care about a pricing situation that would not have existed two years ago. An ominous sign.
Every day at the connecting times, you see 6-8+ 717s scattered around the gate areas. How can this be absorbed in twelve months? The 737 conversions can't do that -- they are absorbing their own capacity!
#22
Join Date: Jan 2002
Location: Atlanta, GA
Programs: DL DM & 5MM, WN
Posts: 1,451
I guess the strategy is to lean down while these are still AirTran routes and then Southwest can "take it over." Currently, there are five AirTran nonstops still left each way between Orlando and Atlanta. Also, two listed Southwest connections, via Raleigh-Durham and New Orleans, at higher fares. This is where we are in a transition plan that is a few years old, for a route that actually goes to a strong SW city.
The last return flight to Atlanta is at 4:30 PM. Delta flies this route nonstop 15 times a day each way, with hourly service back to ATL every hour from 4:30 to 8:30 in the evening. It is fare matching every coach fare 3 weeks out and is selling first class for $75 each way cheaper than AirTran.
Southwest's strategy is to walk away from Atlanta, having purchased 70-odd planes they wanted and selling off 70-odd planes they didn't want. Knocked off some of their most annoying LCC competition in the bargain.
The last return flight to Atlanta is at 4:30 PM. Delta flies this route nonstop 15 times a day each way, with hourly service back to ATL every hour from 4:30 to 8:30 in the evening. It is fare matching every coach fare 3 weeks out and is selling first class for $75 each way cheaper than AirTran.
Southwest's strategy is to walk away from Atlanta, having purchased 70-odd planes they wanted and selling off 70-odd planes they didn't want. Knocked off some of their most annoying LCC competition in the bargain.
#23
Join Date: Sep 2010
Programs: Avis Preferred Plus
Posts: 622
My feeling from reading articles over the years and postings on this forum combined with a gut feeling I had all along is that WN actually does value Atlanta as city to be added to their network, just nowhere what AirTran valued it as. WN is not interested in competing with Delta on hub terms in Atlanta anymore than they would compete with any other airline at any airport where WN is only a secondary presence.
But WN knew that there would be no place for it in Atlanta as long as AirTran is holding on to the second place. Plus those gates are valuable. So destroying Airtran is their only option for them to get access to ATL and in the process cut down LCC competition in other airports where both airlines serve. If WN reduces their flights from ATL, do they just give up the extra gates or they can leverage those gate with other airlines and get reciprocal exchanges at other airports using the ATL gates as leverage?
But WN knew that there would be no place for it in Atlanta as long as AirTran is holding on to the second place. Plus those gates are valuable. So destroying Airtran is their only option for them to get access to ATL and in the process cut down LCC competition in other airports where both airlines serve. If WN reduces their flights from ATL, do they just give up the extra gates or they can leverage those gate with other airlines and get reciprocal exchanges at other airports using the ATL gates as leverage?
#24
Join Date: Dec 2000
Location: Dallas, TX, AA 3MM EXP, WN
Posts: 1,808
My feeling from reading articles over the years and postings on this forum combined with a gut feeling I had all along is that WN actually does value Atlanta as city to be added to their network, just nowhere what AirTran valued it as. WN is not interested in competing with Delta on hub terms in Atlanta anymore than they would compete with any other airline at any airport where WN is only a secondary presence.
But WN knew that there would be no place for it in Atlanta as long as AirTran is holding on to the second place. Plus those gates are valuable. So destroying Airtran is their only option for them to get access to ATL and in the process cut down LCC competition in other airports where both airlines serve. If WN reduces their flights from ATL, do they just give up the extra gates or they can leverage those gate with other airlines and get reciprocal exchanges at other airports using the ATL gates as leverage?
But WN knew that there would be no place for it in Atlanta as long as AirTran is holding on to the second place. Plus those gates are valuable. So destroying Airtran is their only option for them to get access to ATL and in the process cut down LCC competition in other airports where both airlines serve. If WN reduces their flights from ATL, do they just give up the extra gates or they can leverage those gate with other airlines and get reciprocal exchanges at other airports using the ATL gates as leverage?
You forgot to mention it was AirTran major shareholder that sold to get the ROI out. This was not a hostile takeover, it was for sale.
#25
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
My feeling from reading articles over the years and postings on this forum combined with a gut feeling I had all along is that WN actually does value Atlanta as city to be added to their network, just nowhere what AirTran valued it as. WN is not interested in competing with Delta on hub terms in Atlanta anymore than they would compete with any other airline at any airport where WN is only a secondary presence.
Of course WN values ATL. According to WIKI it's the 8th most wealthy metropolitan area in the U.S.
http://en.wikipedia.org/wiki/Highest..._United_States
It's just not going to be a WN hub. It's typical WN, it will be selective on its routes. 1) WN doesn't per se do hubs, and 2) market conditions don't warrant a "hub".
But WN knew that there would be no place for it in Atlanta as long as AirTran is holding on to the second place. Plus those gates are valuable. So destroying Airtran is their only option for them to get access to ATL and in the process cut down LCC competition in other airports where both airlines serve.
#26
Join Date: Jul 2013
Posts: 5,813
But WN knew that there would be no place for it in Atlanta as long as AirTran is holding on to the second place. Plus those gates are valuable. So destroying Airtran is their only option for them to get access to ATL and in the process cut down LCC competition in other airports where both airlines serve. If WN reduces their flights from ATL, do they just give up the extra gates or they can leverage those gate with other airlines and get reciprocal exchanges at other airports using the ATL gates as leverage?
It was clear that Airtran was growing and would eventually come into conflict with Southwest somewhere.
#27
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
I would have like to have seen the competition go on for ever, but two LCCs bloodying each other doesn't seem to benefit anyone, certainly not in the long-term.
#28
Join Date: Jul 2013
Posts: 5,813
Air Tran, while profitable (barely), had the thinnest of thin margins.
Last edited by rsteinmetz70112; Jan 17, 2014 at 11:43 am
#29
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
[QUOTE=rsteinmetz70112;22173198]When the deal was announced I went through the route maps and of the cities each served fewer than a dozen were served by both. In the cities that they both served they generally served different routes. What routes were the competitive on at BWI? I know Airtran went to ATL and to Florida, I'm not sure where Southwest went. But even that was a very small number of the total routes either company flew.
They've competed many years at BWI directly on all the Florida non-stop routes, (which is the bread and butter) and to BOS/PVD and on many other routes via one stops.
What better way to grow than to buy a competitor? All those new planes and orders became WN's- seems like a lot of synergy.
They've competed many years at BWI directly on all the Florida non-stop routes, (which is the bread and butter) and to BOS/PVD and on many other routes via one stops.
What better way to grow than to buy a competitor? All those new planes and orders became WN's- seems like a lot of synergy.
#30
Join Date: Jul 2013
Posts: 5,813
That is one way to grow. My original comment was on Airtran's lower profits. Instead of taking profit from existing operations as Southwest was Airtran was investing in expansion, creating greater future profits.