Jblu To End Service To Atl

[MAH4546]

They're trying to get LGB-DFW rights to be compete against the Gorilla. But, just like in ATL they will pull out of DFW. In certain markets they can't compete against the big guns in this industry.

Delta owns ATL and American owns DFW. You can't compete against these two in their hub cities.

There is no such thing as "rights" in the domestic US market. Any airline can fly between any two domestic US airports (including Guam and Puerto Rico) any time and any day they want. The DOT-restricted airports are New York City LaGuardia and Washington National.

True, jetBlue could fly from LGB to DFW right now if they wished. But they'd have to give up at least one of their other current flights to do it.
LGB is slot-restricted to a certain number of departures per day per local government action.
Those NIMBY's don't want to hear that awful jet noise...

I realize LGB is, unfortunatley, slot restricted. It is not restricted by DOT, however. It is restricted by the local community.

 

[KCFlyer]

Those NIMBY's don't want to hear that awful jet noise...

No, they sure don't...but the odd thing is, those same people are also just as vocal about the "ripoff" airfares they have to pay when low fare competition isn't available at a "convenient" (for them) airport.

 

[funguy2]

No, they sure don't...but the odd thing is, those same people are also just as vocal about the "ripoff" airfares they have to pay when low fare competition isn't available at a "convenient" (for them) airport.

They probably also complain about the drive to LAX and SNA...

 

[funguy2]

Also, for the record, I think JB could have done ok in ATL. I just think there are few domestic markets that work on 1 flight/day... You need to be able to offer multiple options... which is the reason why hubbing works so well in the first place.

 

[AA191]

Please come to PHX!

 

[wrx]

Bottom line is, they can't compete against the big guns! CNN reported this morning that JB pulled out of ATL due to stiff competition. I wonder who the competition was? Could it have been a big gun named Delta? If they plan on surviving they need to do what SWA does. They couldn't take the heat, so they got out of the kitchen.

 

[Diesel8]

wrx,

Why not let DAL and AAI slug it out, as they seem to be doing. The slots at LGB are a very hot commodity, so while the market made money for jetblue, why not go somewhere else for the time being?

DAL has to start worrying seriously about AAI, which is poised with the 737 to offer
a lot more competetion on the "longer hauls".

jetBlue is despite rumours of the opposite doing quite well, but thanks for asking

 

[AKAAB]

jetBlue is despite rumours of the opposite doing quite well, but thanks for asking

Understatement of the year!

 

[jbu320]

QUOTE (AAmech @ Oct 24 2003, 01:46 PM)
I think your mistaking what he means by "owning" DFW and ATL. Theres a phenomenon thats happend again and again at large hub airports. Low Fare airline starts service on a route and lowers prices. The Hub Airline must now lower its fares to match its competitor. The new low fares drive demand thru the roof! Customers looking to fly the route choose the exsisting hub carrier usually by a wide margin. Frustrated Low Fare airline eventually cuts back or eliminates service. Fares start going back up as competition wanes.

I have to agree with you for the most part ' in the past' this was true. The economics and rules seem to be a bit different now. Let's just take JFK for instance.
AKAAB

 

[AAmech]

As it turns out they did not even need to rely on all that capital to survive. Their start up marketing was brilliant and their fares and LF's easily covered their expences. Starting in a fragmented market like NY with no Low Fare service was the work of a genius! They made a small mistake by starting service in ATL (which they've now corrected) which might have worked eventually but why burn money trying to succede there when there's money to be made in BOS?

 

[viggen597]

As it turns out they did not even need to rely on all that capital to survive. Their start up marketing was brilliant and their fares and LF's easily covered their expences. Starting in a fragmented market like NY with no Low Fare service was the work of a genius! They made a small mistake by starting service in ATL (which they've now corrected) which might have worked eventually but why burn money trying to succede there when there's money to be made in BOS?

I couldnt agree more!

We went to ATL, scared the crap out of Delta, lowered fares tremendously, and set a new fare standard for the ATL-LA route. Now we have our buddy Air Tran there to ensure that the prices wont go back to the level that they were previously at.

If anything, we went in, did what we needed to do, and now were going to make $$ elsewhere and we leave Delta losing money on a route they once dominated.

Now THATS genious.

I think LGB-ORD should be next, not DFW.

 

[Ch. 12]

Bottom line is, they can't compete against the big guns! CNN reported this morning that JB pulled out of ATL due to stiff competition. I wonder who the competition was? Could it have been a big gun named Delta? If they plan on surviving they need to do what SWA does. They couldn't take the heat, so they got out of the kitchen.

...but even in pulling out of a market, JB did it much better than other carriers have in the past. They recognized a situation that would not be highly profitable, so instead of dropping fares to the loss-leading level (as is the case when most carriers are trying to "force" a market to work), they just pulled out before it got ugly. No sense burning resources when you can use them in more profitable markets. It's carriers such as Vanguard, US, Midway, TWA, Legend, etc that did not recognize that when it isn't working, it's not worth trying to MAKE it work. You have to be able to bury pride and jump from a market when that is the smart move to make.

 

[wnfan37]

If they plan on surviving they need to do what SWA does. They couldn't take the heat, so they got out of the kitchen.

I think you will see alot more aggression with SWA - the move into PHL was clearly to stump JB from moving in. JB has enjoyed relatively little competition from SWA, the "granddaddy" of low-fare airlines. Now, it's time for the grandaddy to dust off the cane, take delivery of 30+ new aircraft next year, and keep JB at bay.

Let the games begin...

 

[Farley]

Oh no, "the games" are beginning again, and this time they are bringing their "big guns." Haven't those games been going on?

 

[bigbusdrvr]

I think you will see alot more aggression with SWA - the move into PHL was clearly to stump JB from moving in. JB has enjoyed relatively little competition from SWA, the "granddaddy" of low-fare airlines. Now, it's time for the grandaddy to dust off the cane, take delivery of 30+ new aircraft next year, and keep JB at bay.

Let the games begin...

I did'nt work for them but U believe the moniker "Grandaddy of the Low cost carriers" belongs to PSA. Please don't misinterpret a low cost carrier with a group of low rent employees, who would sell their mom for jet time!! Bestr wishes!!!