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Originally Posted by iahphx
(Post 21739785)
One additional problem with maintaining a small presence at a small airport is getting the word out that you even exist. Sure, Frontier did an initial advertising campaign in Wilmington and Trenton to launch their service, but the small operation cannot sustain a large, continued ad campaign. So people forget you're there, and future travelers often don't even realize it.
As an example, I recently had a Delaware friend complain to me about how she was facing a high ticket cost for a PHL to MKE flight at the time she wanted to take to southeast Wisconsin. It didn't even immediately occur to me that perhaps ILG-MDW might be a reasonable alternative for her. If I can't remember that, what are the odds that a "regular" traveler would (like my Delaware friend has no clue that Frontier was operating out of Wilmington). And most flight searches that "normal" people would do wouldn't pull up this option. |
Originally Posted by delawareguy
(Post 21733308)
Probably gonna be FLL, hope they add BOS, CMH, LAS, MYR? Maybe renewed IAH seasonal service?
http://news.flyfrontier.com/press-re...n-wilmington-0 This routes will becomes effective April 29, 2014. |
Originally Posted by davywavy
(Post 21739932)
I thought that both I, and more importantly Frontier, had already said this - that they have to sell the airport as well as the routes, because the airports were completely unknown quantities:
[i]I've never seen numbers for ILG, http://www.philly.com/philly/busines...80f038ecb.html ""The Houston market was a disappointment ... All the other markets are doing well," said Siegel, adding that Frontier is operating at about 90 percent capacity in Wilmington. New Castle Airport director Stephen Williams said the facility has processed more than 70,000 passengers since Frontier began operating in July, roughly equally split between departures and arrivals." Again, this says nothing about yield. |
Here are the potential yields based on average fare and distance for each destination in Q2/2013. The actual RASM and CASM likely differ, but this is a starting point. These numbers were obtained from the DOT Domestic Airline Airfare report.
TTN-RDU = $0.23/mile TTN-DTW = $0.20/mile TTN-CMH = $0.19/mile TTN-ORD = $0.15/mile TTN-ATL = $0.14/mile TTN-MCO = $0.13/mile TTN-RSW = $0.12/mile TTN-FLL = $0.11/mile TTN-TPA = $0.11/mile TTN-MSY = $0.10/mile...not shocked that this was the first route cut. Given these numbers...the Florida service to FLL and TPA is likely hanging on by a thread. The addition of CVG to TTN is also not surprising seeing the strength of the shorter-haul routes. |
Originally Posted by ASDwxguy
(Post 21742278)
Here are the potential yields based on average fare and distance for each destination in Q2/2013. The actual RASM and CASM likely differ, but this is a starting point. These numbers were obtained from the DOT Domestic Airline Airfare report.
TTN-RDU = $0.23/mile TTN-DTW = $0.20/mile TTN-CMH = $0.19/mile TTN-ORD = $0.15/mile TTN-ATL = $0.14/mile TTN-MCO = $0.13/mile TTN-RSW = $0.12/mile TTN-FLL = $0.11/mile TTN-TPA = $0.11/mile TTN-MSY = $0.10/mile...not shocked that this was the first route cut. Given these numbers...the Florida service to FLL and TPA is likely hanging on by a thread. The addition of CVG to TTN is also not surprising seeing the strength of the shorter-haul routes. |
I downloaded Table 6, and then in column C I selected TTN from the dropdown selection menu. ^
http://www.dot.gov/office-policy/avi...d-quarter-2013 The TTN route was the lowest yielding route of all the non-stop destinations out of MSY. The DL route to MEM had a yield of $0.93/mile, and was our highest yielding non-stop destination. It's obvious why we're keeping 2 flights per day even after the dehubbing there. |
Originally Posted by ASDwxguy
(Post 21744247)
I downloaded Table 6, and then in column C I selected TTN from the dropdown selection menu. ^
http://www.dot.gov/office-policy/avi...d-quarter-2013 The TTN route was the lowest yielding route of all the non-stop destinations out of MSY. The DL route to MEM had a yield of $0.93/mile, and was our highest yielding non-stop destination. It's obvious why we're keeping 2 flights per day even after the dehubbing there. |
Using those airfare numbers above as well as the number of flights that quarter*, I estimate the following:
Code:
One wayEdited to add: CASM in Q2 was 11.45 cents. While it is impossible to know how that translates to these routes (the average TTN stage length is 200 miles less than Frontier's systemwide average, but costs may be lower as these are not int'l flights and TTN is cheaper to fly into than DEN), 2 of the 10 were profitable in this regard, and another 2 were within about 3%. Not bad for so soon after launch. As mentioned, 3rd quarter will really shine a light on route finances. *weekly flights x 13 for Florida & MSY, weekly flights x 12 for other cities that launched 2nd week of April. I assumed 4x weekly for MCO, launch number of weekly flights for all other cities. |
I would think some routes will work in the long term - especially those in Florida and (to my surprise) RDU, while I think Columbus will soon go away, probably before Cincinnati service starts.
However, if you are getting 80%+ load factors, even with reduced fares, they should make some money. Don't forget all the luggages fees you have to throw in to the mix. Besides, where else would Frontier get such a long term deal on landing fees? |
Originally Posted by lowfareair
(Post 21744487)
Using those airfare numbers above as well as the number of flights that quarter*, I estimate the following:
Code:
One wayEdited to add: CASM in Q2 was 11.45 cents. While it is impossible to know how that translates to these routes (the average TTN stage length is 200 miles less than Frontier's systemwide average, but costs may be lower as these are not int'l flights and TTN is cheaper to fly into than DEN), 2 of the 10 were profitable in this regard, and another 2 were within about 3%. Not bad for so soon after launch. As mentioned, 3rd quarter will really shine a light on route finances. *weekly flights x 13 for Florida & MSY, weekly flights x 12 for other cities that launched 2nd week of April. I assumed 4x weekly for MCO, launch number of weekly flights for all other cities. |
Originally Posted by iahphx
(Post 21739785)
One additional problem with maintaining a small presence at a small airport is getting the word out that you even exist. Sure, Frontier did an initial advertising campaign in Wilmington and Trenton to launch their service, but the small operation cannot sustain a large, continued ad campaign. So people forget you're there, and future travelers often don't even realize it.
As an example, I recently had a Delaware friend complain to me about how she was facing a high ticket cost for a PHL to MKE flight at the time she wanted to take to southeast Wisconsin. It didn't even immediately occur to me that perhaps ILG-MDW might be a reasonable alternative for her. If I can't remember that, what are the odds that a "regular" traveler would (like my Delaware friend has no clue that Frontier was operating out of Wilmington). And most flight searches that "normal" people would do wouldn't pull up this option. Not that it's very significant but travelocity also associates TTN with Philadelphia. There is no ILG association to Philly on travelocity as well. travelocity sells Frontier flights. The loads might be good at ILG, but the yields are probably terrible. There needs to be more mass awareness/interest to ramp up demand, while supply remains and F9 can charge more if it needs to make the flights more profitable. ILG-IAH was a disaster. |
Originally Posted by lowfareair
(Post 21744487)
It's funny, DTW, CMH, and RDU have the lightest loads yet the 5 new cities added this year are all similar in nature. RASM for Detroit seem to be very high, so it has that going for it. Hopefully the 3rd quarter numbers will show some nice growth, as this was either the launch quarter or 2 months after the launch date for every route except MCO..
I think CMH is one of the most interesting because it took a long time to fill the planes and they dropped the intro fares to $15 each way for a while, but eventually it did well. It's tough to imagine that will be true in January/February, but it reverts to 3 x in the spring. RDU has been a surprise to me as well, and it is going back to 6 x in the spring. |
I'm hoping they'll give MSY another shot at it next year. The loads were very healthy, but they need to raise the fares a bit. I don't think a $10 increase in fares would scare off too many customers. A fare of $120 would put the yields closer to that of TPA.
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What I don't understand is why Frontier doesn't pick, say, 2 destinations from ILG and fly it daily (OK, if they want to do 5x or 6x that might work).
It's just not practical to fly 3x a week. You're going to get horrific yields, because you're basically offering nothing except price at that point. People who would be inclined to be their customers go elsewhere because, for example, you can get them out on Friday. Given how high fares are at PHL right now, Frontier would have a shot if they offered plausible service from ILG to a city that people want to travel to. I mean, look at what Spirit is doing: their service is horrible, but they get people on price (and then charge them for lots of incidentals). If Frontier offered a reservation and in-flight service A LITTLE BETTER than Spirit, with reasonable frequencies, they might be able to build a business out of ILG. And one advantage of ILG is that US might leave them alone. For instance, in response to Spirit's PHL-DFW service, US is charging as little as $44 each way on that route. There's no way Spirit can make money if US is willing to do that. |
Originally Posted by iahphx
(Post 21747298)
What I don't understand is why Frontier doesn't pick, say, 2 destinations from ILG and fly it daily (OK, if they want to do 5x or 6x that might work).
It's just not practical to fly 3x a week. Whether Indigo will continue with this model is beyond my ken, but I find it difficult to believe that Indigo was unaware of the announcements at ILG and TTN and presumably gave them the nod, as CEO Siegel indicated. |
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