Some more "yield pressure" for Delta in ATL

[commavia]

Some interesting news out today regarding some additional competition and "yield pressure" at Delta's hub in ATL:
 
Spirit is adding nonstops from ATL to CLE, LAS, MCO, BWI, PHL, TPA, LAX, BOS and RSW between now and the fall.
 
http://marketing.spirit.com/traveldeals/air.php?s=2049&mw=1
 
"Spirit is about to do Atlanta in a big way."

 

[robbedagain]

well with SWA  and now Spirit  itll be interesting to see how DL responds     

 

[swamt]

Robbed, it also looks like Frontier has been or is adding in ATL as well...
 
Spirit adding nine routes from Hartsfield-Jackson

 

[BABABOOY]

Delta can handle this much better than South West.  
Delta has already announced plans to compete with ultra 
low cost carriers.  It will
be interesting to see how how South West responds. 

 

[FrugalFlyerv2.0]

So much for World Fraudster's theories about i)  LCCs being afraid of picking battle with DL and ii) the impenetrable fortress of ATL (which was kind of laughable to begin with since AirTran grew right under DLs nose [and B6 is growing at JFK too]).

 

[WorldTraveler]

that is precisely why DL created economy basic fares.

DL knows full well that when fares go up high enough and WN is no longer able to provide low fares because their costs are not much lower than the legacy carriers, the ULCCs will move in.

Let's check back in a year and see how effective the ULCCs have been in penetrating ATL compared to DFW>

in the most recent quarter, the ULCCs had less than 4% of the ATL market compared to 11.5% of the DFW market.

further, ULCC share tends to come out of LCC and the weaker legacy carriers in a market than from the strongest legacy carrier. That is simply a reality of the strength of carriers in each market. NK and F9 are more likely to compete with WN than DL, esp. given that in some cases they will offer significant amounts of capacity compared to WN but far less than DL.

because there is no legacy or LCC 2nd carrier at DFW - DL is 40 share points behind AA - the dynamics are different.

and you will also be interested in knowing that DTW and DFW look more alike with the legacy carrier vs. ULCCs.

the difference is that there is no strong LCC in DTW while there is at DAL.

Delta can handle this much better than South West.
Delta has already announced plans to compete with ultra
low cost carriers. It will
be interesting to see how how South West responds.

WN's response is to give away 1/4 of its tickets.

WN's costs are not capable of supporting that level of discounting.

this is exactly why I have said that WN's level of frequencies in many markets is below what they need to defend their market share.

 

[FrugalFlyerv2.0]

further, ULCC share tends to come out of LCC and the weaker legacy carriers in a market

 
Are you saying that Spirit is doing ATL because it senses DL is weak?

 

[WorldTraveler]

nope. Spirit is going after ATL because WN is weak.

given that misinterpret everything else on here, I wouldn't expect you to understand a market based concept.

 

[jcw]

Wait only AA has yield pressure - that is the best - WN is weak - I feel bad for WN they have had a long history of losses and is poorly run

 

[FrugalFlyerv2.0]

further, ULCC share tends to come out of LCC and the weaker legacy carriers

 
 

 
Are you saying that Spirit is doing ATL because it senses DL is weak?

 

nope. Spirit is going after ATL because WN is weak.

 
You make this too easy ... ... ...
 

 

[FrugalFlyerv2.0]

that is precisely why DL created economy basic fares.


Let's check back in a year and see how effective the ULCCs have been in penetrating ATL

 
Actually, people like me are also a part of the reason DL created economy basic fares.
 
And, don't you now wish that DL would be supporting an airport for ULCCs in Paulding county?

 

[metopower]

Damn there goes all the profits for next year.No profit sharing ,layoffs total disaster. .. Oh wait. Spirit.....never mind.

 

[AdAstraPerAspera]

Ditto how contradictory he is
 
When NK was growing at DEN, DFW and ORD, WT crowed at how this was going to impact AA and UA yields.
 
Delta is somehow immune to this pressure, because, I don't know, The Delta Difference. Lol

 

[topDawg]

Some interesting news out today regarding some additional competition and "yield pressure" at Delta's hub in ATL:
 
Spirit is adding nonstops from ATL to CLE, LAS, MCO, BWI, PHL, TPA, LAX, BOS and RSW between now and the fall.
 
http://marketing.spirit.com/traveldeals/air.php?s=2049&mw=1
 
"Spirit is about to do Atlanta in a big way."

I hope you are digging at WT with this. 
 
You and I know both know Delta is going to care about as much as AA has with them in Dallas. 
 
 
they wont. 
 

well with SWA  and now Spirit  itll be interesting to see how DL responds     

WN may care a little
DL wont care at all. 
 
When NK has grown in MSP and DTW Delta didn't even blink. Fact is 95% of the traffic that is on G4/NK/F9 is traffic the big boys want nothing to do with. Delta or Southwest, or American, will never, ever have the cost base to compete with them and the high yielding traffic, even the higher yielding VFR traffic, will stay away from them. 
 
Most of this flying is 1x daily. HVCs aren't going to be interested when you can take 3-4 on WN or 10-12 on Delta. 
 
 
As much as WT is going to turn this into Delta adding this, doing that, and running them out of town......I don't think anyone is worried about it who really work for Delta. Kind of like WN in ATL at this point, no one really cares about their big marketing push. 

Damn there goes all the profits for next year.No profit sharing ,layoffs total disaster. .. Oh wait. Spirit.....never mind.

exactly. 

 

[WorldTraveler]

WN is flying more than 12 markets with less than two flights per day from ATL

They are worried...not DL