More ILG?
#16


Join Date: Jun 2000
Posts: 534
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.
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.
#17
A FlyerTalk Posting Legend




Join Date: Nov 2005
Location: Phoenix, AZ
Programs: American Airlines, Delta Air Lines, Rapids Reward
Posts: 40,121
http://news.flyfrontier.com/press-re...n-wilmington-0
This routes will becomes effective April 29, 2014.
#18
Original Poster
Join Date: Nov 2011
Location: new zealand
Posts: 530
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.
#19


Join Date: Jan 2011
Location: New Orleans, LA
Programs: Marriot Rewards, AC Aeroplan, UA MileagePlus, WN Rapid Rewards
Posts: 89
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.
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.
#20


Join Date: Dec 2000
Location: Philadelphia
Posts: 2,944
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.
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.
#21


Join Date: Jan 2011
Location: New Orleans, LA
Programs: Marriot Rewards, AC Aeroplan, UA MileagePlus, WN Rapid Rewards
Posts: 89
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.
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.
#22


Join Date: Dec 2000
Location: Philadelphia
Posts: 2,944
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.
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.
#23


Join Date: Dec 2000
Location: Philadelphia
Posts: 2,944
Using those airfare numbers above as well as the number of flights that quarter*, I estimate the following:
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.
Edited 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.
Code:
One way
Quarterly
From To flights Load Factor RASM
ATL TTN 48 0.906551932 $0.12705
CHI TTN 72 0.719605475 $0.10393
CMH TTN 36 0.401570048 $0.07624
DTW TTN 48 0.663496377 $0.13425
MCO TTN 52 0.852842809 $0.11398
RSW TTN 26 0.903010033 $0.11157
FLL TTN 39 0.875139353 $0.09467
TPA TTN 39 0.863991081 $0.09577
MSY TTN 26 0.893255295 $0.08778
RDU TTN 72 0.463969404 $0.10708
Edited 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.
Last edited by lowfareair; Nov 7, 2013 at 9:58 am
#24


Join Date: Jun 2013
Posts: 140
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?
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?
#25


Join Date: Jun 2013
Posts: 140
Using those airfare numbers above as well as the number of flights that quarter*, I estimate the following:
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.
Edited 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.
Code:
One way
Quarterly
From To flights Load Factor RASM
ATL TTN 48 0.906551932 $0.12705
CHI TTN 72 0.719605475 $0.10393
CMH TTN 36 0.401570048 $0.07624
DTW TTN 48 0.663496377 $0.13425
MCO TTN 52 0.852842809 $0.11398
RSW TTN 26 0.903010033 $0.11157
FLL TTN 39 0.875139353 $0.09467
TPA TTN 39 0.863991081 $0.09577
MSY TTN 26 0.893255295 $0.08778
RDU TTN 72 0.463969404 $0.10708
Edited 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.
#26
Join Date: Jun 2009
Posts: 1,120
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.
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.
Last edited by rtalk25; Nov 7, 2013 at 10:51 am
#27
Original Poster
Join Date: Nov 2011
Location: new zealand
Posts: 530
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.
#28


Join Date: Jan 2011
Location: New Orleans, LA
Programs: Marriot Rewards, AC Aeroplan, UA MileagePlus, WN Rapid Rewards
Posts: 89
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.
#29
FlyerTalk Evangelist




Join Date: Mar 2000
Posts: 18,236
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.
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.
#30
Original Poster
Join Date: Nov 2011
Location: new zealand
Posts: 530
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.

