Here's my thesis:
WN's entry into PIT is good for U. Here are my assumptions and willdass guesses:
U's costs are within shouting distance of WNs and getting closer.
WN's entry reduces the incremental costs and fully distributed costs per pax of operating out of PIT.
WN's entry forces U to dump past yield management strategies by changing the entire competitive landscape in PIT markets.
U acquires enough large jets to compete with WN head to head on most routes.
U retains a small revenue premium by serving routes with smaller aircraft, including rjs and props to inspire ff loyalty. Maybe even amenities generates some revenue premium.
Markets are stimulated at PIT.
The improved operational and revenue picture at PIT persuades U to take some connectivity pressure of PHL improving the efficiency of PHL's operation, reducing costs there.
Maybe WN wants this? To either kill U or lure it away from over scheduling PHL?
It does seem to me that some carriers live in relative harmony with WN. Is my impression of PHX and DTW incorrect?
Then comes my theories of U leap frogging WN's 90's strategy to become the WN of the 2010's today. Relatively efficient p2p operation BUT with some amenities, connectivity and international service.
And FF programs that DO not provide free trips, but rather are all about upgrades and refundable fares and travel amenities.
WN's entry into PIT is good for U. Here are my assumptions and willdass guesses:
U's costs are within shouting distance of WNs and getting closer.
WN's entry reduces the incremental costs and fully distributed costs per pax of operating out of PIT.
WN's entry forces U to dump past yield management strategies by changing the entire competitive landscape in PIT markets.
U acquires enough large jets to compete with WN head to head on most routes.
U retains a small revenue premium by serving routes with smaller aircraft, including rjs and props to inspire ff loyalty. Maybe even amenities generates some revenue premium.
Markets are stimulated at PIT.
The improved operational and revenue picture at PIT persuades U to take some connectivity pressure of PHL improving the efficiency of PHL's operation, reducing costs there.
Maybe WN wants this? To either kill U or lure it away from over scheduling PHL?
It does seem to me that some carriers live in relative harmony with WN. Is my impression of PHX and DTW incorrect?
Then comes my theories of U leap frogging WN's 90's strategy to become the WN of the 2010's today. Relatively efficient p2p operation BUT with some amenities, connectivity and international service.
And FF programs that DO not provide free trips, but rather are all about upgrades and refundable fares and travel amenities.
