Look's like MIA is the next airport for the LCCs. Right now, all there is is airTran's four daily Atlanta flights.
However ATA will be announcing a return to MIA next week (3x daily MIA-MDW with Southwest codeshare!), words is jetBlue will be announcing MIA, most likely, next month (BOS, JFK, and probably IAD and possibly LGB), and rumour is Independence Air is also finalizing plans for MIA service this winter. With FLL packed to the gills, the LCCs have no choice but to come to MIA.
In my opinion, the effect on AA will be minimal, and the real "loser" (I use the term lightly, because even they won't lose that much) will be FLL. The new carriers will definitley stimulate demand, and what they will steal from AA is bargain hunters that AA doesn't make money on in the first place, not business travelers and, more importantly, international connecting passengers. We will have a situation were AA will lower fares to protect market share, new LCCs will stimulate demand and create more market, and AA's true profit source from flights like MIA-JFK, the international connections and business contracts, will stick with AA and continue to generate that revenue. Or at least that's what I feel.
Though I really, really hope AA decides to launch MIA-MDW in some sort of retaliation. I know they didn't launch it last time ATA flew to Miami, but they have been more agressive in Miami latley.
It happens at an interesting time. For years, full-fare carriers such as Delta and United, have ran a plethora of point-to-point routes from Miami. However, as of late, those point to point route have dwindled heavily, and there are very few left, and AA finally has more than 50% market share, and growing, out of MIA. They are experiecing not only record traffic at MIA, but record revenues and record local boardings. AA definitley won't be pleased at the potential new LCC service, but I think they may take a more conservative approach towards them then they have in the past.
However ATA will be announcing a return to MIA next week (3x daily MIA-MDW with Southwest codeshare!), words is jetBlue will be announcing MIA, most likely, next month (BOS, JFK, and probably IAD and possibly LGB), and rumour is Independence Air is also finalizing plans for MIA service this winter. With FLL packed to the gills, the LCCs have no choice but to come to MIA.
In my opinion, the effect on AA will be minimal, and the real "loser" (I use the term lightly, because even they won't lose that much) will be FLL. The new carriers will definitley stimulate demand, and what they will steal from AA is bargain hunters that AA doesn't make money on in the first place, not business travelers and, more importantly, international connecting passengers. We will have a situation were AA will lower fares to protect market share, new LCCs will stimulate demand and create more market, and AA's true profit source from flights like MIA-JFK, the international connections and business contracts, will stick with AA and continue to generate that revenue. Or at least that's what I feel.
Though I really, really hope AA decides to launch MIA-MDW in some sort of retaliation. I know they didn't launch it last time ATA flew to Miami, but they have been more agressive in Miami latley.
It happens at an interesting time. For years, full-fare carriers such as Delta and United, have ran a plethora of point-to-point routes from Miami. However, as of late, those point to point route have dwindled heavily, and there are very few left, and AA finally has more than 50% market share, and growing, out of MIA. They are experiecing not only record traffic at MIA, but record revenues and record local boardings. AA definitley won't be pleased at the potential new LCC service, but I think they may take a more conservative approach towards them then they have in the past.