US Airways' Pa. fares to jump from $118 to $698

[FutureUScapt]

Amazing then that I can find a flight for $199rt (plus taxes/fees) for travel leaving 12Jan and returning 17Jan.

This reporter couldn't possibly have tried to pick the worst possible scenario to paint an unfavorable picture, could he have? Nah, that would never happen...

In all seriousness though, yes fares will rise. Why should they stay at current levels? WN just proved that these low fares were unsustainable.

I believe the exit of SWA from PIT-PHL (and JAX-PHL, MHT-PHL) had more to do with its realignment with the Tranny guys. Maybe even the slightly underperforming markets are getting the onceover.

Slightly underperforming? There was nothing "slightly underperforming" about WN's shorthaul PHL markets.

 

[Reed Richards]

I just wish someone in Allegheny County would use their brains and dissolve the Allegheny County Airport Authority.........

I always thought the real problem was the bonds for the new airport (now 20 years young) were tied to the County instead of an independent entity. After their largest occupant went BK twice, most airport authorities would have already done something to lower their costs. Apparently , PIT could not do that without placing Allegheny County in the trash.

As usual tonight, I defer to others more knowledgeable on this.

RR

 

[BoeingBoy]

The obvious way out of the bonds would be to default - declare bankruptcy. But that has all kinds of implications for government/quasi-government entities who routinely need to borrow lots of money for big projects they can't afford just with the current income stream. Resurfacing a runway costs much more than any airport can afford to pay from the income stream, so they have to borrow money. The county probably has more leeway to offer muni's, with their lower interest rates, than the airport would as a seperate entity.

The airport terminal was built for US and the bonds, repaid by airport revenues, were to be mostly repaid by US as the biggest tenant by far. But US' bankruptcy #1 and elimination of the hub left ACAA and the county holding the bag. Makes you wonder why any airport caters to one carrier, but look at the money PHL and CLT have spent to benefit primarily US.

Jim

 

[Reed Richards]

Slightly underperforming? There was nothing "slightly underperforming" about WN's shorthaul PHL markets.

I defer to you. But ask why three of SWA's supposedly big performing routes (at least for commuters ) are being dropped in Jan, all out of PHL?

RR

 

[nycbusdriver]

deleted

 

[BoeingBoy]

I defer to you. But ask why three of SWA's supposedly big performing routes (at least for commuters ) are being dropped in Jan, all out of PHL?

RR

I find it hard to believe that WN was losing money on the route. Based on the latest that BTS has - the first quarter of this year so not exactly the high travel season - WN was taking in about $50 grand/day on the route. I suspect that they just figured the planes would bring in more than that somewhere else - like all carriers with fuel prices as they are, WN is trying to maximize revenue.

Jim

 

[FutureUScapt]

I defer to you. But ask why three of SWA's supposedly big performing routes (at least for commuters ) are being dropped in Jan, all out of PHL?

RR

Sorry, I should've been more clear by bolding or italicizing the word "slightly." These PHL shorthaul routes were among some of the worst performers in their entire system. Not surprisingly, their recent cutbacks (PHL and the Pac NW) have been in markets where they are at a competitive disadvantage compared to the competition (US and AS, respectively). WN, like most carriers these days, is realizing that there are certain markets where they have a competitive advantage - pure P2P in fortress legacy hubs isn't one of them - and they are focusing on those markets.

 

[BoeingBoy]

These PHL shorthaul routes were among some of the worst performers in their entire system.

I'd be interested in seeing the numbers supporting that, but it could be true since they had almost no connectivity at one end and little at the other. However, according to the BTS it should have been profitable with WN capturing 48% of the O&D market. So I assume it was a matter of thinking the planes could be more profitable somewhere else. For a P2P carrier they offer a lot of connecting opportunities, just not in PIT or PHL. And they've not exactly been bashful about serving legacy hub cities, as EWR, SEA, DEN, and a few others show.

Jim

 

[Dont call me Shirley]

http://articles.philly.com/2011-11-30/news/30459128_1_fare-hike-air-fares-nonstop-flights

Casey to US Airways: Please rethink fare hikes
November 30, 2011|By Linda Loyd, INQUIRER STAFF WRITER



U.S. Sen. Robert Casey (D., Pa.) has urged the chief executive officer of US Airways Group Inc. to rescind the airline's fare hike planned for flights between Philadelphia and Pittsburgh in early January, when only US Airways will fly between the two cities.

The Pittsburgh Post-Gazette reported Tuesday that when Southwest Airlines Co. drops its flights between Philadelphia and Pittsburgh on Jan. 8, the price for a US Airways round-trip ticket will jump from $118 plus tax, to $698 plus tax.

 

[freedom]

Yes finally ! we beat the snot out of SWA and their running away like whipped whimperinng dogs! TAKE THAT!!!! yeah!

 

[BoeingBoy]

Yes finally ! we beat the snot out of SWA and their running away like whipped whimperinng dogs! TAKE THAT!!!! yeah!

Yes, just look at that thriving LAS hub....

Jim

 

[nycbusdriver]

http://articles.philly.com/2011-11-30/news/30459128_1_fare-hike-air-fares-nonstop-flights

Casey to US Airways: Please rethink fare hikes

Someone should give Senator Casey a lesson in economics and capitalism. Why should US Airways subsidize that route? When SWA served it, they matched fares as a loss leader. Now they don't have to.

Yes finally ! we beat the snot out of SWA and their running away like whipped whimperinng dogs! TAKE THAT!!!! yeah!

Yes, it's a far cry from David Siegel whining: "They're coming to kill us!" when SWA announced flights to PHL.

 

[SparrowHawk]

Yes finally ! we beat the snot out of SWA and their running away like whipped whimperinng dogs! TAKE THAT!!!! yeah!

"Beating the snot out of SWA" is a bit over the top. Granted US won a skirmish in the War with WN and that's good. You do have to remember that on any given day is WN wants a route they can go out and dominate it AND make a profit with a lower fare, US can't. There are still plenty of opportunities for WN to go into a market and dominate without the aggravation that is PHL.

US can't compete head to head on price, however US is nimble enough to make WN go look for lower hanging fruit when it comes to deciding on where to fly. Which if you look at routes WN has withdrawn from, US essentially annoyed them enough as to make other opportunities more attractive.

As to Senator Casey and his asinine comments I'll say they are to be expected of a member of the Lucky Sperm Club/Political Class. Clearly the guy has never made a Sales Call or generated a payroll or Profit. He's good at what most politicians are good at and that's confiscating and spending the fruits of YOUR labor.

 

[PullUp]

Pittsburghers always wanted lower fares and would berate USAir(ways) for fares that were "too high", although they never noticed they could go everywhere from PIT. They cheered when PeoplesExpress arrived, and they opined for Southwest just a few years ago. The politicians told the public - don't worry about US leaving, SW will come in and lease all the gates and go to every corner of God's kingdom, just wait and see.
IMO, US should raise the fare to $1000.
One way.
Cheers.