USAirways, High Yield Monoply Route Challenged

As posted above, these city pairs are prone to heavy ATC delays killing the "quick turn" business model of WN.

It's amazing how history repeats itself. When WN entered the northeast at BWI, all the comments were "Wait till they get a taste of all the delays and winter weather - they'll turn tail and run". Look at BWI now. When WN enter PHL, the comments were "Wait till WN gets a taste of those PHL delays, they'll never make it work". WN's still there.

I mis-remembered the number of daily flights US will run - it's 16 with all but 2 using the E190. That's just looking a Wednesday in the middle of July for PHL-BOS. So over 1600 seats/day on US, at least weekdays.

Jim
 
SWA's current CEO is different than Herb and Colleen in the sense that he's been tweaking the SWA model. Gary Kelly has told the company and the investors that WN needs to go into some cities that were avoided, ie LGA, BOS, MSP, etc to attract Business travelers. They've enchanced their product on Business Select, giving them the opportunity to board first, get extra credit and a drink. When they went into LGA, many questions were raised about delays, and WN stated that they have built that into their model.

Not sure what department where you work and if you are in CLT, but I can tell you that in PHX and LAS, during weather delays and cancellations, LCC is a very good customer of WN. When bad weather hits WN, it depends on the situation and the delay, but it's not unheard of them reroute customers on other carrier's, but they don't do it at the drop of hat like other carrier's do.

I think that a couple of factors hit WN in PHL. PHL did accept WN and they didn't kill LCC, but they faced limited airport space and a huge recession. They adjusted their schedule system wide, dropped 10 flights out of PHL and LCC took it as a sign of retreat. Only thing is that the airport and WN have now remodeled and added new gates to offer a better experience. They have directly chosen a overpriced route, BOS/PHL to return service. From past experience, WN schedules 10 flights per gate per day. I think that this is only the beginning of more service returning to PHL.
 
Tell me then. What kind of seats are in the 757 and 767 forward cabins? Are they Envoy, or First? What's the difference in the actual seat when one of these aircraft is flying CLT - PHL versus PHL - LHR?

Obviously there's no difference in the seats themselves no matter where those airplanes fly. Does that mean that the 321 has Envoy seats when it flies PHL-LHR? Oh...that's right - the 321 doesn't fly routes with either Envoy seats or Envoy service...

Jim
 
Here is how WN kicks US Airways assets every time.

WN's low costs as all of you know are not due to lower wages. Rather it's an asset allocation or utilization of assets. Yes the quick turns enable them to fly the A/C about 20% more. This lowers the CASM since I now fly 20% more customers for the same aircraft cost. The varibles of labor and fuel don't really change so no saving there.

If I'm WN my rampers will unload more aircraft per hour further lowering CASM by reducing labor cost per customer.

What all of this does is allow WN to pay a decent wage and keep cost somewhere around 12 cents a mile versus about 16 cents a mile.

If I'm WN and I decide to fly PHL-BOS and dominate the route, all I have to do is to fly it at 14 cents a mile and wait, as US will either match fares and bleed at the rate of 2 cents per mile per customer or retreat with fewer flights. Either way I bump my prices back up to the 18 cent range and haven't lost a freaking dime while my competitor scrambles to hold market share,

This is where the "Southwest Effect" comes into play. Whatever the traffic is now on average daily it will be significantly more 18 months from now. The question will be at what price? High enough to allow US to be profitable on the route? I think so as the volume will grow and US will defend it's home turf more agressively. IMO in raw numbers US will not lose any customers, what the WILL lose is those fat juicy fares.

IMO look for fierce competition on the route. Secretly I've often wondered why US didn't brand PHL-BOS as part of the US Shuttle? It would serve to differentiate between US & WN
 
Again, I disagree with the low cost claims that everyone is citing. Southwest's low CASM number bandied about is fine for system wide discussions, but won't apply to this route, which I would wager is shorter than average, and will include much higher than average wages for Boston, unless the existing workforce is currently underutilized. Combine that with poor weather on both ends, and generally slow turns due to airport congestion, and this route's CASM will be much higher than their corporate average. Can they enter the market and be profitable? Probably, but I sincerely doubt that their cost for the route is significantly less than for US.
 
You can't compare BWI and PHL when your talking ATC delays. Your average weather day here in BOS or PHL and delays can soar to 4 to 6 hours. No quick turn here baby. If SW doesnt mind locking up aircraft all day, than welcome to our nightmare. One other thing, that means they will have ramp crews from PHL too. :lol:
 
Simple solution, put Republic 170's on the route for a while..... WN can't match ... RP lowest cost in the industry.
 
Do some of you believe that WN is coming into the PHL-BOS market without doing serious research and number crunching? I mean seriously, they run circles....CIRCLES people, around US management. Lord have mercy, WN will do just fine on the route while US will.......well just wait and see. As for the shuttle comment, I have always thought the same thing. Wait, is the shuttle really a "product" anymore? How sad it has become.
 
You can't compare BWI and PHL when your talking ATC delays. Your average weather day here in BOS or PHL and delays can soar to 4 to 6 hours. <snip> One other thing, that means they will have ramp crews from PHL too.

Since WN already operates in both PHL and BOS already, I suspect they know what conditions they face. And I didn't know that WN's current PHL ramp crews commute in every day rather than live in the PHL area.

Jim
 
Is that sarcasm? It just doesn't fit with that stuffy handlebar mustache, and the I'm an aviator sunglasses. I know the type, the ones who think the left seat is the emperor's throne, it explains your very linear views.
 
Hey, now. BoeingBoy is one of the nicest people on this board. And, Mrs. BoeingBoy doesn't think that mustache is stuffy at all. And, he were a aveeator; so, why cain't he wear aveeator shades?
 

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