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Go Trannie!

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easydoesit

Well-known member
Joined
Aug 28, 2006
Posts
167
AirTran plans major expansion at Mitchell

AirTran plans major expansion at Mitchell

Airline seeks to double number of airport gates it occupies to 4

By AVRUM D. LANK
[email protected]

Posted: Oct. 12, 2007

AirTran Airways is planning a major expansion at Milwaukee's Mitchell International Airport after being stymied in its attempt to buy Midwest Airlines.
An AirTran Airways flight destined for Atlanta leaves the gate area at Mitchell International Airport. AirTran's proposal to add gate space follows an unsuccessful bid to buy the airport's dominant carrier, Midwest Airlines.

On Wednesday, a Milwaukee County Board committee will consider a request by AirTran to double to four the number of gates it occupies at Mitchell, which is owned by the county.
AirTran also plans to hire seven more employees in Milwaukee next month, a 20% increase in staffing, said Kevin Healy, vice president of planning for the Orlando-based carrier.
If it is successful in its bid for the four gates at Mitchell, AirTran would have larger operations only at its Atlanta hub and in Orlando and Baltimore.
AirTran "probably learned quite a bit about the Milwaukee market, having studied the Midwest deal for as long as they did," said Bob Mann, president of R.W. Mann & Co., an airline consulting firm in Port Washington, N.Y.
"They may have concluded that with or without Midwest, it would be in their interest for them to grow more rapidly and perhaps use Milwaukee as a focus city."
During its pursuit of Midwest, AirTran said it eventually would add 74 daily departures and 27 new destinations from Mitchell.
Friday, Healy was coy about plans for the extra gates. Asked where service might be added, he said: "I can't tell you that. To places people want to go."
Nonstop service to the West Coast might appeal to AirTran, Mann said, because its fleet of Boeing 737 jets can easily make the flight.
Midwest has limited non-stop service to the West Coast from Milwaukee because its fleet of mostly Boeing 717s cannot make the trip, he said.
An airline typically likes to have six to eight daily flights from a gate, meaning that AirTran could have 24 to 32 flights a day if it gets four gates at Mitchell, Mann said.
AirTran has 22 flights a day from the four gates it uses at Chicago's Midway Airport.
AirTran is the third-largest carrier at Mitchell with a 7.3% market share. It has nine flights a day, serving Orlando, Atlanta, Baltimore and Las Vegas.
It has said it will expand to a dozen daily flights by the end of the year, adding service to Phoenix, Fort Myers and Tampa.
Oak Creek-based Midwest has a 55.2%, share at Mitchell. Northwest Airlines of Eagan, Minn., is No. 2 with 13.1%.
AirTran lost an unsolicited bid for Midwest earlier this year when the Wisconsin carrier agreed to be purchased by a TPG Capital, a private equity firm in Fort Worth, Texas, with Northwest having a 47% stake in the deal.
The transaction is being studied by federal anti-trust regulators.
AirTran wants four gates on the newly-opened extension of the C concourse at the north end of Mitchell's terminal.
It would move from gates 60 and 61 on the E concourse, which it shares with Northwest and Continental Express. Airport Director Barry Bateman said that when Skybus Airlines begins flying to Milwaukee Dec. 5 with service to Columbus, Ohio, it also will use a gate on the E concourse.
If AirTran's move is approved, Mitchell would be left with three unoccupied gates, Bateman said.
The matter will be considered by the County Board's Committee on Transportation, Public Works and Transit on Wednesday morning.
Bateman said he supports the proposal. Under the plan, AirTran's monthly rent would go from about $17,000 to about $23,000.
Healy said the move would be completed "before Thanksgiving."
"I don't think there is any new news here," said Scott Dickson, a senior vice president and chief marketing officer for Midwest. "They are doing a very small number of flights out of here, even with the added ones."
 
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Wonder how long it will take NWA to push to crush expansion in MKE.

Oh, probably as long as it took them to "crush us" in their hubs- MSP and MEM . . . I'd debate the matter further, but I have a flight departing for MSP and MEM soon . . . . . see you in MKE, Senator!.
 
Great avatar, Ty. I had Ron Jeremy on a BOI-LAX flight and he wasn't nearly so cheerful looking... mostly tired and pissed off. Didn't acknowledge my "Have a good evening, Mr Jeremy" on the way out the door. That's okay, I got to explain to the cute young FA why he's famous! :D
 
Let's see....Dwight Yoakam, Steve Martin, Jimmy Buffett, and Ron Jeremy. I'm looking for a central thesis here but I'm going to need TW's help.
 
Let's see....Dwight Yoakam, Steve Martin, Jimmy Buffett, and Ron Jeremy. I'm looking for a central thesis here but I'm going to need TW's help.


Stay tuned . . . . next week:

Clarence Darrow, Lizzie Borden, and Ernest Hemingway.

;)
 
Good luck with that! NWA's expansion's in MKE have never panned out. Those Milwaukeeans love Midex fiercely it seems.
 
There are a lot of things that NWA management doesn't do very well. <--Nominee, Biggest Understatement, 2007.

Defending turf ain't one of their weaknesses.

Caught a SWA flight into MSP lately? Ask Reno. Or Frontier.

There's a huge diference between having a "presence", and being a "factor" in a market.

AirTran saw a vulnerability in the MKE market. NWA saw it too. One of them has locked-up the dominant carrier in that market. One hasn't.

Fork Lift Joe will pay a premium, and a high continuing cost, to gain market share in MKE.
We'll see if he has the markeing savvy to gain a significant beachhead. For comparison, review his own comments about AirTran's success in ATL, "It's probably due more to Delta's miscalculation, than our marketing strength."

NWA wil not make the same mistakes.
 
If

Oh, probably as long as it took them to "crush us" in their hubs- MSP and MEM . . . I'd debate the matter further, but I have a flight departing for MSP and MEM soon . . . . . see you in MKE, Senator!.
I'm willing to bet if NWA really intended to "crush" Trannie's presence in either MSP or MEM, you wouldn't be going there today. They aren't shy when it comes to defending their turf. I don't think they view a couple of flights a day by Trannie as a serious threat or impact. But then again, maybe you RJ and the senator could meet up in a stall at MSP and discuss it.:blush:
 
HA! 2 additional gates a MAJOR expansion! Please. Im sure Timmy is really scared right now. Hope they add their promised flights to Buffallo and Montreal out of MKE and see how this would have worked out in reality had AirTran won the fight. Reality will prevail when all they do is add flights to destinations already served by Midwest. Trannie is like the kid who is still trying pick a fight after just getting his as* kicked.
 
Who really knows whats going to happen.. I have heard though that MKE is one of the highest load factor cities that AAI serves. AAI got beat by SWA in MDW, and still expanded. MEH isn't SWA, and if the flights stay full, you can bet AAI will add more and more cities out of MKE. This is the perfect time for AAI to expand in MKE if they are going to do it. NWA really can't defend much of MKE right now because it may cause problems with TPG's purchase of MKE.. Besides... Remember what NWA said? They will not be involved in the day to day operations of Midwest, so they won't be involved with protecting MKE unless NWA does it with red tailed airplanes.. But then again, if you believe NWA won't be in some way involved with the everyday operations of MEH, I have a really nice Yugo that chicks dig I can sell you.
 
HA! 2 additional gates a MAJOR expansion! Please. Im sure Timmy is really scared right now. Hope they add their promised flights to Buffallo and Montreal out of MKE and see how this would have worked out in reality had AirTran won the fight. Reality will prevail when all they do is add flights to destinations already served by Midwest. Trannie is like the kid who is still trying pick a fight after just getting his as* kicked.

It's what we can do with two extra gates that counts. What you are seeing is planned expansion not a "kid trying to pick a fight" as you suggest. We have 65 more 737's coming, can't put them all in ATL so hence new gates at other cities.
 
Who really knows whats going to happen.. I have heard though that MKE is one of the highest load factor cities that AAI serves. AAI got beat by SWA in MDW, and still expanded. MEH isn't SWA, and if the flights stay full, you can bet AAI will add more and more cities out of MKE. This is the perfect time for AAI to expand in MKE if they are going to do it. NWA really can't defend much of MKE right now because it may cause problems with TPG's purchase of MKE.. Besides... Remember what NWA said? They will not be involved in the day to day operations of Midwest, so they won't be involved with protecting MKE unless NWA does it with red tailed airplanes.. But then again, if you believe NWA won't be in some way involved with the everyday operations of MEH, I have a really nice Yugo that chicks dig I can sell you.

it appears the markets AAI are going to from MKE are either:

a) have additional capacity (we're full on our ATL flights, it appears you are as well)
b) low yield leisure markets (LAS, LAX, PHX, Florida)
c) if they start to use their slots (DCA, LGA) then their real motive may be shown (ie direct competition on high yield routes)

my guess is AAI is hedging it's bets. they do not want to announce routes (and thus have any overlap with MEH) if the TPG deal falls through at which point I would expect the MEH BoD to offer JL his last deal. if the deal goes through they are simply finding new routes and will use MKE and MDW as focus cities for their future midwest hub (IND, STL, ?).

if it is c and the TPG deal goes through, then I would expect growth at MEH to happen quicker (as MEH is now NWA's principal ally in MKE) to protect MSP/DTW.
 
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The attempted buyout of MEH bought lots of press for AAI. Kevin H. has said our load factor out of MKE is probably the highest in the system thanks to all the press either bad or good.

The airline industry is a commodity industry if you can offer a similar, albeit less luxurious, product at a much discounted price and at the same time have even have a higher on-time rating than your competitor you will win.

Ticks me off Timmy sold all you guys out for a short-sighted gain to his ego and pocket book.
 
The attempted buyout of MEH bought lots of press for AAI. Kevin H. has said our load factor out of MKE is probably the highest in the system thanks to all the press either bad or good.

The airline industry is a commodity industry if you can offer a similar, albeit less luxurious, product at a much discounted price and at the same time have even have a higher on-time rating than your competitor you will win.

Ticks me off Timmy sold all you guys out for a short-sighted gain to his ego and pocket book.

the price ain't that much discounted. we seem to continuously run fare sales to keep the cash up around $150m. these fair sales tend explain our low yield unit values.

off the internet price for tomorrows first flight MKE-ATL
MEH - $266 on 7:40pm flight (only one showing right now and this is really a biz fair).
AAI - $266 coach / $301 biz - same price all day

for sh!ts and giggles here is the thanksgiving fares (WED travel to ATL, SUN travel back):
MEH - $291.30 round trip (biz fare)
AAI - $261.30 round trip (coach with both discounted fares - business class was $621.30)

now granted our walkup fares are a lot higher......
 
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the price ain't that much discounted. we seem to continuously run fare sales to keep the cash up around $150m. these fair sales tend explain our low yield unit values.

off the internet price for tomorrows first flight MKE-ATL
MEH - $266 on 7:40pm flight (only one showing right now and this is really a biz fair).
AAI - $266 coach / $301 biz - same price all day

for sh!ts and giggles here is the thanksgiving fares (WED travel to ATL, SUN travel back):
MEH - $291.30 round trip (biz fare)
AAI - $261.30 round trip (coach with both discounted fares - business class was $621.30)

now granted our walkup fares are a lot higher......

I am willing to wager a guess that MEH is not making a profit on that and is selling at a loss to try and match airtran. How do I know this our CASM is about 22% less than MEH.

Now when AAI and others add service and MEH is force to match at a loss they will be in bigger trouble espceically with a 2-3 million dollar profit or loss they usually get.

But don't worry the owner TPMG will get all their money back when they sell pieces of the company back to NWA. Once again screwing the employees over.

Good thing you get to keep the cookie. A tragic shame the little guy loses again.
 
Skybust

Looks like someone else has the same idea...

Sky-bust. . . . That website fare generator is a clunky turd . . . . Bet their "bounce rate" is over 50%. One thing you don't "cheap out" on is your website. . . . . :rolleyes:

If they want to pony up some cash, Ty Webb Aviation Consulting might be available . . . . doubt they can afford me, though. ;)

If you don't get help from Ty Webb . . . Get Help!

TW


.
 
Man thats the funniest thing i've seen on these boards yet! Although the Ma and Pa Kettle math clip is a close second.


The link in your signature line is obnoxious. If things are that bad, maybe you should consider turning tricks for Congressmen in a MSP bathroom during your "Airport Appreciation TIme".

It would seem to be even more lucrative, and would take only a little less personal integrity :rolleyes: .
 
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