thanks CO738. its all true and sorry that some wont admit it. business is still business. but WN will NEVER say that they failed in a market and will run the market at a loss just for the presence. they have the cash. like i said they pulled out of BDL-PHL and there is talk of pulling out of PVd-PHL. WN has run out of domestic markets and they are looking at international. they have to. Jetblue Airtran Spirit are into it and making no dents into the market. the stats speak for themselves.
Again, good point.
WN is also cutting capacity on PHL-PIT and PIT - MDW.
Now, here is WN's problem with the eastern seaboard:
A DAL based jet may fly 8 segments/day.... 137 seats at, say, an AVERAGE fare of $100/seat -- that is $13,700 per segment in fare revenue + cargo ops, or $109,600.00 max/day
OK, a LAS - PHL run takes all day - they might be able to squeeze in a LAS-SAN run into the day by grace of better turn times. So, 2 segments at an average fare of $150 ... errrr that's only a max of $41,100/day -- if you add a short hop (2 segments) $68,500 MAX PER DAY -- THAT IS A HUUUUGGGEEE LOSS IN REVENUE.
THIS IS WHY B6 CUT EAST-WEST CAPACITY!!!! SO THEY ADDED FLIGHTS TO THE ISLANDS!!! Guess what, similar block times, BUT HIGHER FARES. It's still not as good as 8 short-hops, but MUCH BETTER.
PLUS, WN runs very light loads... US's E-Jets, which manipulate CAPACITY, FREQUENCY and CONNECTIONS really hurts WN's competitive edge in PHL, even if their product is superior. PLUS, business travelers like the ideas of earning miles for upgrades for that big annual trip/vacation to Europe... WN does well in TX AZ CA for these reasons, but poorly in other markets.
Again, good point.
WN is also cutting capacity on PHL-PIT and PIT - MDW.
Now, here is WN's problem with the eastern seaboard:
A DAL based jet may fly 8 segments/day.... 137 seats at, say, an AVERAGE fare of $100/seat -- that is $13,700 per segment in fare revenue + cargo ops, or $109,600.00 max/day
OK, a LAS - PHL run takes all day - they might be able to squeeze in a LAS-SAN run into the day by grace of better turn times. So, 2 segments at an average fare of $150 ... errrr that's only a max of $41,100/day -- if you add a short hop (2 segments) $68,500 MAX PER DAY -- THAT IS A HUUUUGGGEEE LOSS IN REVENUE.
THIS IS WHY B6 CUT EAST-WEST CAPACITY!!!! SO THEY ADDED FLIGHTS TO THE ISLANDS!!! Guess what, similar block times, BUT HIGHER FARES. It's still not as good as 8 short-hops, but MUCH BETTER.
PLUS, WN runs very light loads... US's E-Jets, which manipulate CAPACITY, FREQUENCY and CONNECTIONS really hurts WN's competitive edge in PHL, even if their product is superior. PLUS, business travelers like the ideas of earning miles for upgrades for that big annual trip/vacation to Europe... WN does well in TX AZ CA for these reasons, but poorly in other markets.
I am waiting for someone to say they save money on over-head, landing fees, even snacks -- but this does not add up 50 Grand. Granted, I do not work in the airline industry (I wish I did and am trying hard, nor do I have an MBA - I just finished my undergrad work.) however, I understand how business works, and in a world on VERY slim margins, running a 73G across country doesn't work. This is why a 57 or 67 is a better choice.