LUV runs not walks from New England to PHL
- Thread starter usfliboi
- Start date
Usfliboi, you are a funny dude! Do you know anything about Luv? We don't hemorrhage money on non profitable legs. If the people of any particular airport enjoy lower fares when a competitive carrier comes to town, you had better appreciate them with your business, or there is a good chance they will cut flights or potentially all service. It's a business, we like to make people happy, but we need to fill planes and grow just like any other carrier. Sorry for the loss, it could be temporary. Honestly I don't know if that is a reliable source, but if loads are down consistently , then it is probably true.
xUT
Veteran
LUV is 'nimble' and will drop a market that doesn't make money.
Just good business sense!
Kudos LUV!
B) xUT
Usfliboi, you are a funny dude! Do you know anything about Luv? We don't hemorrhage money on non profitable legs. If the people of any particular airport enjoy lower fares when a competitive carrier comes to town, you had better appreciate them with your business, or there is a good chance they will cut flights or potentially all service. It's a business, we like to make people happy, but we need to fill planes and grow just like any other carrier. Sorry for the loss, it could be temporary. Honestly I don't know if that is a reliable source, but if loads are down consistently , then it is probably true.
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
Plus it's worth noting that WN isn't abandoning New England. All the cities that have WN service will still have WN service. They're just consolidating that traffic feed by sending it to BWI, MDW, and some other places. Now you have the US FF's who didn't fly WN because they woulded their FF perks complaining about how fares from PHL to New England are already going up.
Jim
Jim
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
All this decision does is confirm that WN is well run but it is by knowing that getting into costly fights with other carriers would only hurt WN.
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WN's success has been built on carving out a strong market presence in small markets or ones that it has dominated. There really is not much history of WN being a large player alongside another network carrier in its hub.
WN is smart enough to know that it can have a decent sized presence in PHL and other airline hubs but its presence will be heavily focused on service to WN's own hubs/large focus cities as well as large markets where there is room for multiple carriers regardless of the stripe.
The PHL-NE market was just not large enough for WN and US side by side.... WN's best strategy is indeed to serve those smaller NE cities from other cities and focus on using their assets in other locations where they can make more money.
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WN's success has been built on carving out a strong market presence in small markets or ones that it has dominated. There really is not much history of WN being a large player alongside another network carrier in its hub.
WN is smart enough to know that it can have a decent sized presence in PHL and other airline hubs but its presence will be heavily focused on service to WN's own hubs/large focus cities as well as large markets where there is room for multiple carriers regardless of the stripe.
The PHL-NE market was just not large enough for WN and US side by side.... WN's best strategy is indeed to serve those smaller NE cities from other cities and focus on using their assets in other locations where they can make more money.
I wouldnt quite say WN will run from competion, as a matter of fact that is laughable at best. WN has a strong history of slugging it out with larger better funded airlines, you need to do some reasearch. If we leave now it is simply a shrewd buisness decision where the cons of battling another outweigh the pros, however if the pros outweighed the cons, I can guarantee you they would stay and have a fare battle , and more than likely win , because even after "restucturing" cost per available seat mile for the "legacies" IS STILL HIGHER. Check out WN's history in the west coast, and when they first started opperating they went into markets dominated by other carriers who were trying to keep them from even getting off the ground. Along with the UAL fare battles on the left coast, when United Shuttle was introduced to try to fend them off, DIDNT WORK. Do some homework.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
the only place I used the term "run" in my post was to say that WN is a well run company.
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I didn't say WN would run. Your response to me should focus on what I wrote, not what someone else posted in the thread.
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I agree with you that it makes good business sense for WN NOT to get into a fare war at this point.
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You yourself would also do well to understand that what WN accomplished in the past was driven by a much larger cost advantage it had to the industry than it has right now. WN won a lot of competitive battles before other carriers organized in BK and then also when WN had a cost advantage driven by its fuel hedges.
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Right now, WN's cost advantage to US is about 10% and DL over the past year has had a lower mainline CASM than WN. That is precisely why WN is not trying to engage in a costly market share battle at the same time it is trying to finish its merger with FL - where WN has alot of work to do to get FL's network to a place that is compatible with the way WN does business.
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Once again, I have repeatedly said WN is a well run company and they will adapt. For now, their finances do not allow them to get into a costly market share contest in the NE-PHL markets and they have wisely chosen to focus their attention elsewhere.
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I didn't say WN would run. Your response to me should focus on what I wrote, not what someone else posted in the thread.
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I agree with you that it makes good business sense for WN NOT to get into a fare war at this point.
.
You yourself would also do well to understand that what WN accomplished in the past was driven by a much larger cost advantage it had to the industry than it has right now. WN won a lot of competitive battles before other carriers organized in BK and then also when WN had a cost advantage driven by its fuel hedges.
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Right now, WN's cost advantage to US is about 10% and DL over the past year has had a lower mainline CASM than WN. That is precisely why WN is not trying to engage in a costly market share battle at the same time it is trying to finish its merger with FL - where WN has alot of work to do to get FL's network to a place that is compatible with the way WN does business.
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Once again, I have repeatedly said WN is a well run company and they will adapt. For now, their finances do not allow them to get into a costly market share contest in the NE-PHL markets and they have wisely chosen to focus their attention elsewhere.
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