First USAir, back in 1991, vacates 55% Market share in California and hands it to WN. Then, the Battle for Baltimore a few years later. We know how that went.
Then MHT, PVD, PHL, and ultimately PIT. Anyone see a pattern here?
Not to mention ISP, BUF, ALB, etc. What's the pattern? A high-cost, high-fare airline that was simply unwilling or unable to restructure its business to be competitive. Dave Siegel's original restructuring plan was to just shrink capacity to bring up fares -- that's why so many RJ's were ordered. But this isn't a workable plan in an industry where true LCC's use rationalized fares to stimulate traffic enough to fill mainline jets.
Southwest went into PHL because the post-bankruptcy I US Airways was still the same as before -- and that presented a huge market opportunity. Why PHL instead of ATL, MSP, EWR, CVG, MEM, etc.? Because PHL was one of the largest U.S. markets without significant low-fare competition (ATL has AirTran) and US was still one of the highest-cost majors.
I just hope the New USAirways under the "leadership" of Doug Parker can finally hold off WN for a change. When a WN Captain makes almost $50 more per hour for flying a similar aircraft, when all other crafts at WN earn more, it's just another huge slap in the face that we can't compete. Especially after all the employees of U/East sacrificed to get to this merger.
So, you're saying that you will feel vindicated if your lower salaries will help "hold off" a more efficient competitor which feels that it's important to compensate its employees fairly? Is it Southwest management's fault that they have tried to reduce costs as much as possible without going after their employees' paychecks (or laying off people)?
How about going on the offensive for a change? Send a few EMB-170's to Love Field to let 'em know we are still in the game. Or how about getting back in the intra-California mix. WN has no non-stop competition from SAN to RNO or SMF. Let's take the battle to them for once.
I don't think Southwest has much to worry about if you throw EMB-170's at their markets. JetBlue has acknowledged that their EMB-190's would have CASM's significantly above their A320's, and the EMB-170 has higher CASM than the 190 (since it is smaller). Southwest can underprice your costs on the EMB-170 and still make a profit.
The reason Southwest doesn't have non-stop competition on routes like SAN-RNO or SAN-SMF is simply because they don't abuse their monopoly position. PHL-CLT is comparable in length to SAN-SMF (actually, it's a bit shorter). Southwest's average SAN-SMF fare is roughly 70% lower than US's average PHL-CLT fare. Southwest's rationalized pricing policy gives you little room to make inroads by undercutting them. And they will run out of cash well after US would bleed itself into liquidation.
We can't stop this Big Orange Gorilla. Their vaunted fuel hedges won't last forever.
You fail to understand that it's not just about the fuel hedges. They have one of the lowest non-fuel unit costs in the industry, have a huge pile of cash, own most of their fleet free and clear of mortgages, and have a healthy corporate culture. Going forward, US Airways needs to rationalize its pricing and continue to streamline its product (remove non-value-added costs) in order to make itself a less attractive target to WN. When you're charging $500 each way (walkup) to go from PHL to BUF, that makes you an attractive target.
One accurate statement made by Just Call Me Dave Siegel was "Southwest is coming to Philly to kill us." We were on our knees then but we got up to fight another day. Got some money and some moxie now. Let's Roll.
Southwest went into Philly because US Airways was still being managed poorly in any number of ways! Why do you think Southwest got such a warm reception from the Philadelphia community? Do you think people like paying high fares for service that is often mediocre? Why do you think your customers started chanting "Southwest" in the baggage claim at PHL when faced with yet another hour-plus delay in receiving their bags?
Southwest is often not the lowest-priced option on a particular route. Their customers understand, however, that they can generally rely on Southwest to offer a reasonable fare -- even on very short notice. Southwest's product is also reliable -- you know what you're getting, and their employees are typically nice to the customers.
You MUST be kidding! I've got better things to do with MY time than listen/watch some swa propaganda video.
