Overall, PIT Traffic is Down

[BoeingBoy]

but there is an important component which public figures might not allow us to break out and that it where in the LCC system the higher yields are coming from.

My guess is three places:

1. Monopoly markets in the NE.
2. Carribbean/Mexico.
3. Europe.

Clue,

While Dea's waiting for your response - what did you find better about HP's service compared to US - there's some tidbits that can be derived from public data related to your guesses.

Yields are somewhat problematic since the 3rd qtr report didn't contain those figure for either Express operation. What was given was RASM (total, not passenger) for each mainline and each Express operation:

HP Mainline RASM = 9.01 cents
HP Express RASM = 10.84 cents
US Mainline RASM = 10.98 cents
US Express RASM = 15.96 cents

Notice that US Mainline is higher than HP, and on lower load factor at that. Likewise, US Express is higher than HP Express by a significant factor, again on lower LF. Given the higher US RASM, on lower LF, it certainly appears that the East system has a significant yield advantage, especially in the Express markets where the difference is really significant.

Of course, the 3rd quarter didn't have HP's fare structure in place in the East system. Presumably that will be coming at some point, and will affect these numbers when it does.

Of course, there's the cost side:

HP Mainline CASM = 9.60 cents
HP Express CASM = 11.76 cents
US Mainline CASM = 11.13 cents
US Express CASM = 15.92 cents

Jim

 

[insp89]

PineyBob states in post #41,

"Don't think for a minute they're [SW] trying to kill Usairways,

they've already proven they can do that out west".

Bob, I'm guessing you're talking about the late eighties and early ninties time frame..? 15, 16 years ago ?

So many paint this doom and gloom for Southwest in the years to come. Sure there hedges may run out over time. To think that they have been so successfull all these years and not have an eye for what is down the road for them is silly. They may not have it as good in the future as they do currently but they obviously do something right. I doubt you'll see Southwest dying on the vine due to others restructuring and fuel hedges running out. They run an excellent business model and must give props when due. That isn't changing. We at US collectively need to try to be a leader and not a follower which we have been for many years.

Travelpro72,

I haven't read anyone on this particular board predicting "Doom and Gloom" or "Dying on the Vine" for Southwest..

 

[Travelpro72]

There are those out there that feel as if Southwest will "have their day" due to the fact that everyone is restructuring in some form. They have a great operation and will continue into the future. I didn't say any one particular person said that on this board or thread. It has been said on here in the past. What I meant was that even with all the restructuring being done they will continue to run a good operation.

 

[insp89]

There are those out there that feel as if Southwest will "have their day" due to the fact that everyone is restructuring in some form. They have a great operation and will continue into the future. I didn't say any one particular person said that on this board or thread. It has been said on here in the past. What I meant was that even with all the restructuring being done they will continue to run a good operation.

No doubt about it..

 

[ClueByFour]

Clue,

Sorry to go off topic here, but in what ways was the HP transcon better than US East? Cleaner planes, more beverage services, better or more food? Were you in F/C or coach? I believe we really do want to be the best so please be specific. Thanks!

Dea

In no particular order:

1. Glass and silverware (I was in the front).
2. Quality of the food (although it's been ages since I've had a US transcon ex-PHX, so this may be a wash).
3. The cabin, and particularly the front lavatory was actually clean.

The service part was roughly on par with US East--which suprised me, because that has (in my limited experience with shorter hops in the front on HP) where US East had them beat. Of course, from chatting with the FA, it seemed like she was relatively senior by HP standards (11 or 12 years, maybe?).

Where HP traditionally (in my limited experience) fell down in front is that the pitch a drink predeparture (maybe), one upon 10k, and that's it for a long time, whereas the US crews are typically excellent about coming around periodically to check up on ya. Since this particular FA was more "east" in that regard, that was not an issue.

I guess it's kind of closer to the (in my mind) knock-your-socks off service that US used to throw on the transcons. I chalk it up (in this case) to the HP folks getting better tools to work with (in the form of a clean plane, glassware, and the like).

Dea--the "old" US management left you guys in the cold in a lot of ways inflight--especially on long hops in F. It has nothing to do with the employees, and everything to do with the tools they are empowered to work with (in some cases). This was one of them.

I am not expecting (LCC, anyway) to ever return to 4 courses (hopefully bringing back the ice cream sundaes), good glassware, silverware, and decent wine again in domestic F. However, if you meshed the typical service oriented attitude of the East folks with the tools that the West folks have at their disposal, you would have (in my estimation) a fair to middlin' domestic F product.

HP also needs the snack basket 😉.

 

[Dea Certe]

Clue,

Thanks for the reply. I do appreciate it.

While I don't think our service will ever be what it once was, I do have faith that our new management is more responsive to both employees and customers.

Please keep an eye on us. I think we're poised to impress, in an LCC kinda way!

Dea