Originally Posted by milypan
(Post 28984613)
At this point I have no idea what their SFO/LAX expansion strategy is. They don't want to provide a reasonable network for business travelers, they don't want to compete on price for budget travelers, they don't want to provide a competitive product for people willing to pay for premium cabins...who is going to fly them? I like MileagePlan, and the simple fact that they're not UA, but that's barely enough to keep me, and it's certainly not enough for the other 99% of potential customers. What a mess...
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There appears to be a lack of understanding of what type of customers Alaska is targeting and what type of airline they want to be in the future. I’m not going to lay out what’s already been described, but premium travelers expecting a leading premium transcon product and most road warriors are not their target. If you’re not comfortable with this strategy, you shouldn’t be an investor or a customer.
Management certainly dropped the ball ball on a few issues and failed to say the right things to analysts. At the end of the day, I’m more concerned with management doing the right thing over scripting out the perfect responses. |
Originally Posted by notquiteaff
(Post 28984666)
Well, I asked because you are mentioning last-in-class transcon proposition and "lamest product offering". Clearly that is the case in F on premium transcons. Not so clear to me that it's the case for someone like me who buys the cheapest fare because it comes out of my own pocket.
So that leads you to either shop on price, or -- more likely -- concentrate spend with another airline that has comprehensive coverage. |
Originally Posted by fly18725
(Post 28984726)
There appears to be a lack of understanding of what type of customers Alaska is targeting and what type of airline they want to be in the future. I’m not going to lay out what’s already been described, but premium travelers expecting a leading premium transcon product and most road warriors are not their target. If you’re not comfortable with this strategy, you shouldn’t be an investor or a customer.
Seriously, why would anyone flying out of SF or LA choose AS unless they were the cheapest option? What is the value proposition there? Management is coming to the same realization. On their own conference call they admitted that they don't understand why fares are so low in their CA markets and why they can't fill planes if they try to charge a premium. The "we're relevant on 70% of trips" line is nonsense. By "relevant" they just mean "you could fly us if you happened to be going there," but they give no reason why you'd pay a premium to fly them, especially since they would be entirely irrelevant for 30% of potential trips. |
The target is not the VX customer, the target is the WN customer. If you look at the intra-CA adds and the fact they're trying to have a reasonable map for CA residents if you compare AS vs. WN, AS can come out ahead, especially at the Gold or 75K status level - assigned seats, upgrades, free changes, free bags. It's basically an ehnanced level of service over WN. No companion pass, but other perks. The value proposition is solid. So much so that WN is afraid (look at their latest promo for 1 purchase with a CC and a companion pass for a year for CA customers).
SFO-JFK flatbed flyer, yeah, not so much. North-south flyer, absolutely can work. Mix of flights, maybe AS can work.
Originally Posted by milypan
(Post 28984646)
They're missing three of the top 15 markets from the SF Bay Area (PHX, HOU, ATL). And by "missing" I don't mean "you can't get there on a non-stop." I mean you can't get there on any reasonable itinerary at all. That's not true for UA, AA, DL, or WN. The only large carrier with a worse network here is B6 (and yes, that is exactly why AS paid $2.6b for VX despite having no real plan at all).
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Originally Posted by milypan
(Post 28984781)
Seriously, why would anyone flying out of SF or LA choose AS unless they were the cheapest option? What is the value proposition there?
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I think the one major thing we are forgetting is AS has the best loyalty program hands down, particularly for those of us that cant fly on expensive fares or purchased F. I try to fly on AS as much as possible as I find the value of the miles earned (if used wisely). As long as they continue to have a miles based program I will continue to use AS.
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Originally Posted by BearX220
(Post 28984750)
"Lamest product offering" applies to F, to be sure, but the other half of the problem is, AS+VX does not add up to a comprehensive national network. Without the AA alliance, you get an array of slim-frequency, high-priced routes to a mix of major and medium markets. No way to reach smaller markets outside the west; no way to get to MIA, or anywhere north of BOS, or any of Canada east of BC, or any of the South except ATL and CHS.
So that leads you to either shop on price, or -- more likely -- concentrate spend with another airline that has comprehensive coverage.
Originally Posted by fly18725
(Post 28984726)
Management certainly dropped the ball ball on a few issues and failed to say the right things to analysts. At the end of the day, I’m more concerned with management doing the right thing over scripting out the perfect responses.
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Originally Posted by BearX220
(Post 28984750)
"Lamest product offering" applies to F, to be sure, but the other half of the problem is, AS+VX does not add up to a comprehensive national network. Without the AA alliance, you get an array of slim-frequency, high-priced routes to a mix of major and medium markets. No way to reach smaller markets outside the west; no way to get to MIA, or anywhere north of BOS, or any of Canada east of BC, or any of the South except ATL and CHS.
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Originally Posted by jsguyrus
(Post 28984824)
I think the one major thing we are forgetting is AS has the best loyalty program hands down, particularly for those of us that cant fly on expensive fares or purchased F. I try to fly on AS as much as possible as I find the value of the miles earned (if used wisely). As long as they continue to have a miles based program I will continue to use AS.
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Originally Posted by Madone59
(Post 28984833)
+1 Mind blowing there is no VX/AS service to CLT!
Big East Coast airports with lots of flights, where nobody wants to go don't make sense for a West Coast O/D carrier. AS is at a disadvantage for these as their nearest hub is 2,000 miles away...they can't just send a feeder plane in and grab what little local traffic there may be. Unless they get enough West Coast volume, they can't make it work. An East Coast hubbed airline can do it, though. You'll notice that nobody serves CLT from the West Coast, except AA who is the beneficiary of the flows through there. DL doesn't have LAX/SEA-CLT, UA doesn't have SFO-CLT, etc. |
Originally Posted by channa
(Post 28984794)
AS SFO-PHX service starts in March. AS also has their code on AA LAX-IAH and LAX-ATL. Come late April when VX goes away, SFO-LAX-IAH/ATL is easy enough. AS has their code on AA ORD-ATL as well. SFO-ORD-ATL is not terribly out of whack.
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And no one but a tiny collection of diehards is going to fly SFO-LAX-IAH or SFO-ORD-ATL when plentiful cheap non stops are available on UA/WN/DL
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Originally Posted by jsguyrus
(Post 28984824)
I think the one major thing we are forgetting is AS has the best loyalty program hands down... As long as they continue to have a miles based program I will continue to use AS.
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Originally Posted by BearX220
(Post 28984980)
I think people underestimate the (now weakened) role of the FF program in keeping people outside the west coast glued to AS.
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