US and DL trade blows on new hub routes

Considering ATL Washington already has low fares and multiple competitors to every airport while CLT fares are high and there is no competition to LGA and no service at all to JFK, DL is likely to do more harm to US than the other way around.

These are the kind of cat fights that are costly in the short term but may (or may not) shape the outcome of the industry shakeout in the long term. In reality, I suspect DL’s move is more about getting a bigger foothold in CLT to keep another carrier out should US fails.
 
With a competitive cost structure and frequent traveler base, US Airways will match up well against Comair.

Passengers will continue to fly US Airways between CLT & LGA on a mainline aircraft versus an RJ with their FTP account growing.

Today's message: fares are coming down and costs must be lower than revenue.

Regards,

USA320Pilot
 
ITRADE said:
Back at you, Delta.

Yes, US used to run 3x daily Mesa RJs. It was halted due to 9-11 and never resumed.
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I think both carriers will have a tough time making these new routes work. For DL, the 3x daily CLT-LGA on a CRJ won't compete well against US with mainline aircraft and better frequency. The 1x daily CLT-JFK should fare better...DL has done this single RJ feeder flight into other carriers hubs for years. DL already flies PIT-JFK and PHL-JFK.

US will also face a tough fight on DCA-ATL. The EMB170 is a better plane than the CRJ, but up against DL's hourly service, it will be a challenge. But what will make this fight even tougher is the presence of Airtran which flies 4x daily using 717's.
 
Well, since I posted the info on the CLT-NYC market, I'll do the same here...

Average of 2,635 passengers a day in 1st quarter with an average one-way fare of $161 (29.4 cent yield).

Same source

Jim
 

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