Turbulent times for low cost carriers?

[USAirUnited]

Now that the Department of Justice has approved the three way code share for Delta, Northwest, and Continental in addition to the already existent US Airways and United Airlines deals. What will be the competitive response from the smaller low fare no frills carriers? As I recall they were lobbying pretty hard to put up a road block but things didn’t work out.

 

[N421LV]

Well I for one think they should go repaint the entire fleet as a bold competitive response...and...well...on second thought...

...fleet standardization! Sure, we'll just get rid of all those different types of airplanes and get down to...just...oh wait, we already only operate one type.

...how about buying another carrier?...hmmmm, maybe...after all, they've been soooo successful in the past and all..

...I know! Fractionals! That's where the REAL money is! Yeah, we'll start a corporate jet operation...and...well...

...RJs! YES!!!! We've got to go buy a few hundred of them RJs! By golly, that's the future of air travel in these United States! They're so profitable, comfortable...inexpensive....and, uh....


Actually, if they're smart they'll not follow the myriad bad examples out there of what NOT to do and instead just stick to what got them where they are today. And I'm not just talking about SWA.

 

[KCFlyer]

[blockquote]
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On 1/18/2003 8:44:25 PM USAirUnited wrote:

Now that the Department of Justice has approved the three way code share for Delta, Northwest, and Continental in addition to the already existent US Airways and United Airlines deals. What will be the competitive response from the smaller low fare no frills carriers? As I recall they were lobbying pretty hard to put up a road block but things didn’t work out.
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[/blockquote]

IIRC - they also lobbied pretty hard against the "segment tax" that the big boys were hoping to use as a club against SWA. They lost that one, too... But lo and behold, SWA ended up clubbing THEM by moving in with a bunch of longer haul flights. Just because SWA lobbied against something doesn't necessarily mean that they are "afraid" of codeshares. As I mentioned in another thread, codeshares are a lot of smoke and mirrors and will have little, if any, impact of strengthening the financial positions of any of the partner airlines.

 

[KCFlyer]

Then again, a "codeshare" between Airtran, Southwest and Jetblue might make the "partners" in these major codeshares sh*t green twinkies.

 

[AAmech]

[blockquote]
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On 1/18/2003 8:44:25 PM USAirUnited wrote:

Now that the Department of Justice has approved the three way code share for Delta, Northwest, and Continental in addition to the already existent US Airways and United Airlines deals. What will be the competitive response from the smaller low fare no frills carriers? As I recall they were lobbying pretty hard to put up a road block but things didn’t work out.
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[/blockquote]

I'm sure they're just shaking with fear!!!!

 

[7.5victim]

I'm pretty sure the competetive response will be to continue to focus on profitable niches and to continue to make money. There's no need to codeshare. Unlike the majors, the little guys don't need to stifle competition like the "Axis Of Evil" alliance is trying to do.