Connecting in LAS when the flights are always full? No more LAX-BWI or PHL. If the LAX is full too LAS and LAS is full to BWI and PHL, where are they going to be able to get available seats? Connecting in other cities would be more like it, such as PHX, but then they still overloading the PHX-East flights. PHX-EAST is almost as long as doing LAX-EAST.
I agree with the logic, but the few flights they are stopping isn't going to help WN customers who want to fly from Coast to Coast. That is OK for if it increases the shorter flights. Actually that is the way to do the business. Leave the Trans Cons to the others and grab all the short to medium hauls. More flight ops, more money. If your gonna get $99 for PHL-LAX, Your better off flying PHL-MDW for $79-89 and that plane would get more turns in. The amount that WN would lose on trans cons will easy double up on the shorter runs, just that they must choose the right pairings.
I made this exact point a few weeks ago. I even did the math. See:
http://www.usaviation.com/forums/index.php...=35809&st=0
Again, good point.
WN is also cutting capacity on PHL-PIT and PIT - MDW.
Now, here is WN's problem with the eastern seaboard:
A DAL based jet may fly 8 segments/day.... 137 seats at, say, an AVERAGE fare of $100/seat -- that is $13,700 per segment in fare revenue + cargo ops, or $109,600.00 max/day
OK, a LAS - PHL run takes all day - they might be able to squeeze in a LAS-SAN run into the day by grace of better turn times. So, 2 segments at an average fare of $150 ... errrr that's only a max of $41,100/day -- if you add a short hop (2 segments) $68,500 MAX PER DAY -- THAT IS A HUUUUGGGEEE LOSS IN REVENUE.
THIS IS WHY B6 CUT EAST-WEST CAPACITY!!!! SO THEY ADDED FLIGHTS TO THE ISLANDS!!! Guess what, similar block times, BUT HIGHER FARES. It's still not as good as 8 short-hops, but MUCH BETTER.
PLUS, WN runs very light loads... US's E-Jets, which manipulate CAPACITY, FREQUENCY and CONNECTIONS really hurts WN's competitive edge in PHL, even if their product is superior. PLUS, business travelers like the ideas of earning miles for upgrades for that big annual trip/vacation to Europe... WN does well in TX AZ CA for these reasons, but poorly in other markets.
QUOTE(CO738 @ Jun 1 2007, 04:54 PM) *
Again, good point.
WN is also cutting capacity on PHL-PIT and PIT - MDW.
Now, here is WN's problem with the eastern seaboard:
A DAL based jet may fly 8 segments/day.... 137 seats at, say, an AVERAGE fare of $100/seat -- that is $13,700 per segment in fare revenue + cargo ops, or $109,600.00 max/day
OK, a LAS - PHL run takes all day - they might be able to squeeze in a LAS-SAN run into the day by grace of better turn times. So, 2 segments at an average fare of $150 ... errrr that's only a max of $41,100/day -- if you add a short hop (2 segments) $68,500 MAX PER DAY -- THAT IS A HUUUUGGGEEE LOSS IN REVENUE.
THIS IS WHY B6 CUT EAST-WEST CAPACITY!!!! SO THEY ADDED FLIGHTS TO THE ISLANDS!!! Guess what, similar block times, BUT HIGHER FARES. It's still not as good as 8 short-hops, but MUCH BETTER.
PLUS, WN runs very light loads... US's E-Jets, which manipulate CAPACITY, FREQUENCY and CONNECTIONS really hurts WN's competitive edge in PHL, even if their product is superior. PLUS, business travelers like the ideas of earning miles for upgrades for that big annual trip/vacation to Europe... WN does well in TX AZ CA for these reasons, but poorly in other markets.
I am waiting for someone to say they save money on over-head, landing fees, even snacks -- but this does not add up 50 Grand. Granted, I do not work in the airline industry (I wish I did and am trying hard, nor do I have an MBA - I just finished my undergrad work.) however, I understand how business works, and in a world on VERY slim margins, running a 73G across country doesn't work. This is why a 57 or 67 is a better choice.