Alaska nears $2B bid for Virgin America
#121
Join Date: Feb 2004
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It would be interesting to see if AS could sustain a two-tier first class airline, with some routes (transcons) getting the VX planes with their fancy seats, and all other routes getting stuck with regular AS first. Some other airlines have done this with their JFK-LAX/SFO routes -- can AS make it work on the DCA-SEA/PDX/LAX routes?
#122
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Or like how WN has large operations set up at LAS, OAK, LAX, PHX, SJC, SNA and SAN? I hear they're doing just TERRIBLE these days...
#123
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FWIW, VX's prices were rarely competitive for me connecting to LAS or other points (UA usually beat them by a lot, AS often beat them on the nonstop). I don't think they were really trying to make their hubs into connecting hubs. So I think they are additive to the AS network, not a case of "OMG, where do we connect people now?!?!?!"
#124
Join Date: Mar 2011
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#125
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They had to start somewhere. The Bay Area has large amounts of O/D traffic that doesn't require a hub. WN is a good example of how far you can go if you ditch the traditional concept of a hub that you MUST connect people through. AS's success in SJC/SAN is also a case where they are largely catering to local markets (it's not like anyone other than a crazy FT mileage runner is going to go SEA-SAN-BOS/MCO).
So unless they can fill those flights up with a lot of O&D traffic, they're going to be reliant upon the hub system to help fill up their planes. Even more so because that O&D traffic will be more one-sided. Their market presence in NYC will be a sliver of what DL/AA/UA/B6 each have. Switch out WN for B6, and you've got the situation in the WAS market. Then there's Boston... and Chicago. Even with the merger, there just won't be a large customer base in any of those east coast markets.
AS/VX will be the second largest carrier at SFO. And much further out from the carrier in third place. They won't have that advantage at LAX. So keeping a route like LAX-LAS (which AS never chose to serve) and competing with AA/WN/DL/UA/NK instead of just continuing to place their code on AA flights (and I think still on DL's flights), makes good sense how again?
#126
Join Date: May 2006
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I have been wondering that, but the logistics of airline mergers make this something that won't happen for at least a couple of years after any merger closes. Even if they get their combined operating certificate fairly quickly, they have to get the crews in place to move planes from one route to another, as until all contracts are combined they can't have AS crew fly VX planes and vice-versa (AA is still internally distinguishing US and AA equipment, crews, etc.)
This is going to be interesting to watch unfold. The Eskimo is a lot different now than before. At least my VX points won't be totally worthless.