Sw Thinks U Is A Non-factor In It's Pit Decision?

It's also an "offense is the best defense" strategy. Get a foothold there before some other LCC moves in.
 
Well, here's how I'd imagine they view it. Today, US Airways' mainline departures from PIT are down almost exactly 75% from four years ago (from 277 to 70) and total departures including Express are down 55%. I'd guess the number of daily seats have probably been cut by two-thirds or more. And yet overall U.S. airline passenger traffic has largely recovered to 2001 levels, though at somewhat reduced yields. It seems clear to me that the cuts at PIT are disproportionate to what's going on in the industry as a whole, especially when you consider that traffic to and from PIT is largely depressed by high fares. Southwest manages 85 daily departures from BNA in spite of Nashville's metro population being half of Pittsburgh's.

The other piece of the picture is that US Airways' response to an incursion by Southwest at PIT is going to be limited at best. US Airways' agreements with GE mean that the airline's mainline fleet will be shrinking by nearly 10% over the next three years. With hubs to maintain at PHL and CLT, not to mention focus cities at BOS, LGA, DCA, and FLL, US can't really add enough capacity at PIT to make things difficult for WN. They can match fares, but it's likely that both airlines will see enough traffic to fill their planes at the reduced fare levels.
 
sfb said:
it's likely that both airlines will see enough traffic to fill their planes at the reduced fare levels.
[post="238820"][/post]​

Should we venture to guess which one will make a profit at those reduced fares?
 

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