Several updates
Oct 3, 2010 | 8:13 pm
#1
Original Poster
Join Date: Oct 2004
Posts: 2,653
Several updates
Updates on several items to pass on from a handful of sources:
Reservations Integration
--Though there were glitches, the integration generally went well
--Call center is now working on a single platform, and there's no longer a small (and shrinking) set of people who answered just the Midwest calls, which lead to excessive wait times.
--More technology updates and improvements are in line for the rest of Q4
EJet Installation Timeline
--Wifi should be installed in all Ejets by the end of the year.
--The E170's should have the new seating, including the Stretch section, installed by the end of November.
--Getting Stretch on all EJets is important for the brand, but the E170's higher costs don't afford reduced seating. So the E170's are being converted to slim line seats with 2" additional perceived legroom.
--The slim line seats have less padding, and they are re-examining the seats to see if additional padding or adjustment can improve comfort.
--Long-term intention for the E170 are to use them exlusively on short hops(under 75 min), monopoly, and/or RJ-competition markets only. If the seating is not ultimately as comfortable as the E190/Airbus fleet the limited role for the E170 will help to mitigate this.
Anticipated Effects of Southwest buying AirTran
Potential Challenges to Frontier:
--Having ten gates (8 FL + 2 WN) in Milwaukee gives the combined airline a great deal of potential expansion infrastructure if they so choose.
--More LGA slots could put Southwest in DEN-LGA, hurting revenue in a key Frontier market. This is not true for DEN-DCA as Frontier was awarded specific authority for this which Southwest does not have.
--Southwest will now be in many additional markets, including many which Frontier serves today such as Dayton and Flint. Southwest generally brings a stronger brand (reputation, awareness, and following) than AirTran, which could ratched up competition against Frontier in these markets.
--Southwest will gain new access to Mexico and other international destinations, opening the door for them to moe easily compete against Frontier's international service, especially in Denver.
--Southwest will be on target for the #1 spot in Milwaukee and the #2 spot in Denver with the combined mass of the merger.
Potential Benefits to Frontier
--Mergers always put a certain segment of traffic up for grabs for various reasons, including there simply being one less competitor. Some of that traffic will head Frontier's way.
--Frontier's product compares much better to Southwest's than AirTran's. This will especially show distinctive differentiation in the Milwaukee market.
--Southwest is higher cost airline, meaning some of the more modest or marginal AirTran routes might not be viable, lessening competition or openeing new opportunities for Frontier.
--Market rationalization in Milwaukee is very likely with one less competitior, especially in markets which both AirTran and Southwest currently serve.
--Milwaukee is has a key, unique geographic role for AirTran, but not Southwest because Midway is so nearby. Southwest has no strategic need to serve unprofitable markets from MKE.
--The probable end of the Skywest partnership in Milwaukee should help the results of the small jet segement at Milwaukee.
Consolidation and Alignment
Although the number of LCC's is continuing to decrease, there have been no discussions nor are there plans to discuss merging. Discussions are ongoing with several carriers about the potential to "collaborate, codeshare, interline, etc".
Reservations Integration
--Though there were glitches, the integration generally went well
--Call center is now working on a single platform, and there's no longer a small (and shrinking) set of people who answered just the Midwest calls, which lead to excessive wait times.
--More technology updates and improvements are in line for the rest of Q4
EJet Installation Timeline
--Wifi should be installed in all Ejets by the end of the year.
--The E170's should have the new seating, including the Stretch section, installed by the end of November.
--Getting Stretch on all EJets is important for the brand, but the E170's higher costs don't afford reduced seating. So the E170's are being converted to slim line seats with 2" additional perceived legroom.
--The slim line seats have less padding, and they are re-examining the seats to see if additional padding or adjustment can improve comfort.
--Long-term intention for the E170 are to use them exlusively on short hops(under 75 min), monopoly, and/or RJ-competition markets only. If the seating is not ultimately as comfortable as the E190/Airbus fleet the limited role for the E170 will help to mitigate this.
Anticipated Effects of Southwest buying AirTran
Potential Challenges to Frontier:
--Having ten gates (8 FL + 2 WN) in Milwaukee gives the combined airline a great deal of potential expansion infrastructure if they so choose.
--More LGA slots could put Southwest in DEN-LGA, hurting revenue in a key Frontier market. This is not true for DEN-DCA as Frontier was awarded specific authority for this which Southwest does not have.
--Southwest will now be in many additional markets, including many which Frontier serves today such as Dayton and Flint. Southwest generally brings a stronger brand (reputation, awareness, and following) than AirTran, which could ratched up competition against Frontier in these markets.
--Southwest will gain new access to Mexico and other international destinations, opening the door for them to moe easily compete against Frontier's international service, especially in Denver.
--Southwest will be on target for the #1 spot in Milwaukee and the #2 spot in Denver with the combined mass of the merger.
Potential Benefits to Frontier
--Mergers always put a certain segment of traffic up for grabs for various reasons, including there simply being one less competitor. Some of that traffic will head Frontier's way.
--Frontier's product compares much better to Southwest's than AirTran's. This will especially show distinctive differentiation in the Milwaukee market.
--Southwest is higher cost airline, meaning some of the more modest or marginal AirTran routes might not be viable, lessening competition or openeing new opportunities for Frontier.
--Market rationalization in Milwaukee is very likely with one less competitior, especially in markets which both AirTran and Southwest currently serve.
--Milwaukee is has a key, unique geographic role for AirTran, but not Southwest because Midway is so nearby. Southwest has no strategic need to serve unprofitable markets from MKE.
--The probable end of the Skywest partnership in Milwaukee should help the results of the small jet segement at Milwaukee.
Consolidation and Alignment
Although the number of LCC's is continuing to decrease, there have been no discussions nor are there plans to discuss merging. Discussions are ongoing with several carriers about the potential to "collaborate, codeshare, interline, etc".
Oct 4, 2010 | 9:09 pm
#3
Join Date: May 2009
Location: Sussex, WI
Programs: Marriott Platinum, Delta Silver Medallion, Fmr Midwest Miles Executive
Posts: 151
Does this deal motivate/push Frontier to get some kind of "relationship" with an international carrier? Talk about being able to differentiate from Southwest...being able to accumulate miles that are redeemable to virtually anywhere in the world via OneWorld, for instance, would be a big difference between Southwest and Frontier.
Oct 4, 2010 | 9:36 pm
#4
Original Poster
Join Date: Oct 2004
Posts: 2,653
Does this deal motivate/push Frontier to get some kind of "relationship" with an international carrier? Talk about being able to differentiate from Southwest...being able to accumulate miles that are redeemable to virtually anywhere in the world via OneWorld, for instance, would be a big difference between Southwest and Frontier.