osunut said:
get real.. HP CASM is one of the lowest in the industy 8.29 (4/20/05), (03/05) DL 19.9, NW 10.61, DL 10.58, UA 9.83, AA 9.57, CO 9.42, US 9.40 WN 8.09 & B6 5.09.......B6 still has yet to start heavy MX and that alone is a major chunk of your CASM after labor.
not a LCC.....U even began to model its operation and business plan after HP prior to going to the ATSB to get the loan guarentees.....anyway, HP not a LCC ... silly boy.....
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CASM doesn't tell the whole story without stage lengths, and even then it is just a number. Numbers aren't worth much unless you know where they came from and what goes in to creating them.
When I say HP isn't a full LCC in the mode of WN, I am referring to the overall business model. Everything about a LCC is simple. HP's operation and business is
simpler than the legacies but not as simple as the other LCCs, and thus I consider it a quasi-LCC.
Fares- HP is simpler than legacies, but still more complex than WN, B6, FL. Similar to AS in complexity.
Distribution- HP is fully in the GDS, just like the other majors and AS. WN, B6 are not, other LCCs are.
Fleet types- HP has 3, FL has 2, B6 will have 2 soon, WN has 1, legacies have more than 3. AS has 2.
Aircraft utilization- I haven't looked at this for HP in a while, I would assume they get excellent utilization out of their fleet with their transcon redeyes and the LAS night hub, thus I would guess it is on par with other LCCs.
Hub operation- HP runs mainly a hub operation, with a few p2p flights. More reliant on their hubs for connecting traffic than B6 or WN.
Codesharing/interline- B6 doesn't, WN didn't until TZ which is the only airline they codeshare/interline with, and the arrangement is very limited, FL doesn't codeshare (but was willing to with TZ) but will interline. HP fully interlines and codeshares. Not as much as the legacies or AS, but more than the other LCCs.
Regional/feeder operation- HP fully uses Mesa to help feed their hubs. FL used Air Wisconsin for a while to do this, but then ended the agreement. B6, WN do not have one. HP acts like a legacy carrier with their feeder ops.
International flights- HP flies to Mexico and Canada, B6 and FL have a few international, WN has none, AS also has Mexico and Canada.
F class- HP has one, FL has one, B6/WN don't. AS does.
Loyalty program- HP's is based on the traditional miles and structured very much like the legacies and AS, B6/WN/FL are based on segments.
(And don't even try to compare HP to a European LCC like Ryanair or EasyJet.)
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HP certainly has some differentiation from the legacies, but their business model is not on the same simplicity as B6/FL/WN. How much does their CASM benefit from the good weather hubs they have? I guarantee if you took FL or B6 or WN and had them operate HP's route structure with their business models and with HP's labor contracts that they would all produce lower CASMs for the same route structure than HP does.
Hey I give HP credit, they've been left for dead many times and are still here turning a profit while going up against WN, but their business model does not reflect a true, full-fledged LCC. A quasi-LCC, yes, but not a full one.