USA Today Article on FLYI
Like the photo:)
Link to USA TODAY Article I thought the quote from Air Tran was interesting (grumble grumble :) David |
Independence Air doesn't get it - driving down airfares to cause higher-cost competitors to be unprofitable is fine - fair competition, that is, if you have a cost structure that enables you to be profitable. I have not seen anywhere that Independence Air's cost structure is anywhere near low enough to sustain such fares.
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Originally Posted by UnitedSkies
Independence Air doesn't get it - driving down airfares to cause higher-cost competitors to be unprofitable is fine - fair competition, that is, if you have a cost structure that enables you to be profitable. I have not seen anywhere that Independence Air's cost structure is anywhere near low enough to sustain such fares.
This is exactly right. Sorry, but Indy's attempt at driving fares so low is just driving them right into the ground themselves. UA and US aren't going anywhere. They're not reducing WAS area service, and in fact both carriers are countering the attack with expansion (i.e. US's new DCA service to ATL, CLE, IAH, DTW, etc etc) |
Actually UA and US are shrinking...
Originally Posted by GotCalcio4
This is exactly right. Sorry, but Indy's attempt at driving fares so low is just driving them right into the ground themselves. UA and US aren't going anywhere. They're not reducing WAS area service, and in fact both carriers are countering the attack with expansion (i.e. US's new DCA service to ATL, CLE, IAH, DTW, etc etc)
"US Airways April Mainlin Traffic Fell 0.2% DOW JONES NEWSWIRES May 4, 2005 2:14 p.m. ARLINGTON, Va. -- Despite increased capacity, US Airways Group Inc.'s (UAIRQ) April traffic fell 0.2% and load factor weakened as the company faced tough comparisons to the year-ago period, which included the Easter holiday. In a press release Wednesday, the air carrier said fuel prices and trends in traffic and revenue prompted it to schedule removal of 10 aircraft from its fleet as of its August schedule change." ^ AND: "United Air April Traffic Fell 3.8% DOW JONES NEWSWIRES May 5, 2005 12:43 p.m. CHICAGO -- April traffic at UAL Corp.'s (UALAQ) United Airlines unit fell 3.8%, on a 4% capacity drop, as dismal North American traffic offset overseas gains." ^ So even though Indy is making some cuts in the smaller markets with the regional jets, they are vastly increasing their reach this month with those 4 new Airbus destinations. Not to mention that they are also upping their service to some existing east coast cities from CRJs to Airbuses. ^ |
Originally Posted by DataBaseDude
I hate to rain on your parade but according to the WSJ:
"US Airways April Mainlin Traffic Fell 0.2% DOW JONES NEWSWIRES May 4, 2005 2:14 p.m. ARLINGTON, Va. -- Despite increased capacity, US Airways Group Inc.'s (UAIRQ) April traffic fell 0.2% and load factor weakened as the company faced tough comparisons to the year-ago period, which included the Easter holiday. In a press release Wednesday, the air carrier said fuel prices and trends in traffic and revenue prompted it to schedule removal of 10 aircraft from its fleet as of its August schedule change." ^ AND: "United Air April Traffic Fell 3.8% DOW JONES NEWSWIRES May 5, 2005 12:43 p.m. CHICAGO -- April traffic at UAL Corp.'s (UALAQ) United Airlines unit fell 3.8%, on a 4% capacity drop, as dismal North American traffic offset overseas gains." ^ So even though Indy is making some cuts in the smaller markets with the regional jets, they are vastly increasing their reach this month with those 4 new Airbus destinations. Not to mention that they are also upping their service to some existing east coast cities from CRJs to Airbuses. ^ |
Rack up them losses please!
Originally Posted by UnitedSkies
All great, except Independence Air's entire network is on the east coast and to select west coast destinations. UA and US have networks that span the globe, and can better weather losses at their Washington area operations. One can even say that while not desirable, UA can lose its pants at IAD but you can't say the same for Indepdendence Air.
Also US is being stalked on all fronts: PHL, PIT, WAS, CLT. It's just a matter of time until the revenue from the high fares that they have been charging for years dries up after this recent waive of LCCs moving into their hubs. I'm not sure how the CEO thinks that they will break even in the summer, but I would love to see it. If not DH might go chapter 11 (I personally give it 50-50), but US is far more likely to go chapter 7, maybe not for a few months, but let SouthWest get some more 737s and they will be ready to finish US off. WN is taking delivery of approx. 1 737 per week while US has already announced that they are cutting back on the number of big jets and kicking up the number of smaller jets. As for UA, one good little strike by those F/As and kiss 'em buh-bye. |
We'll have to wait and see
Originally Posted by UnitedSkies
Independence Air doesn't get it - driving down airfares to cause higher-cost competitors to be unprofitable is fine - fair competition, that is, if you have a cost structure that enables you to be profitable. I have not seen anywhere that Independence Air's cost structure is anywhere near low enough to sustain such fares.
The best numbers that any of us could go off of at this point are the April numbers. If anyone has 'em please post 'em. While I believe that in the long run DH is going to make it (and hopefully without going into bankruptcy) I am just blown away by this comment in the article : "But Skeen said Independence is cutting costs and might break even this summer and turn a profit next summer." That just seems really ambitious, and makes me wonder where they are getting the costs cuts from. At any rate, if we all had numbers from April to look at we might be able to join in Kerry's sentiment, but until then we will just have to wait. |
Originally Posted by UnitedSkies
All great, except Independence Air's entire network is on the east coast and to select west coast destinations. UA and US have networks that span the globe, and can better weather losses at their Washington area operations. One can even say that while not desirable, UA can lose its pants at IAD but you can't say the same for Indepdendence Air.
US, on the other hand... You really think they can weather strong losses at DCA? They gave up on PIT, there's not a whole lot at CLT, and WN is killing them at PHL. What's left? DCA. If DCA takes it in the pants, what's US got left? |
Originally Posted by DHAST
US, on the other hand... You really think they can weather strong losses at DCA? They gave up on PIT, there's not a whole lot at CLT, and WN is killing them at PHL. What's left? DCA. If DCA takes it in the pants, what's US got left?
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Originally Posted by DataBaseDude
FL just moved into CLT last week and I wouldn't be suprised if they ended up expanding their service there.
https://www.flyi.com/company/pressar...ar/032905.aspx Starts next month. |
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