Airtran Airways Mdw Expansion Jan '05

[Dennis Miller]

I offer my amateur analcyst prognostications for perusal for those who wish to peruse.

Isn't that the mantra of Professor Marvel from the Wizard of Oz?

 

[lowecur]

Isn't that the mantra of Professor Marvel from the Wizard of Oz?

Absolutely correct, Sir! Do you work for AirTran?

 

[atafan]

I know that SWA is a tough customer but they are not invincible. ATA lost to SWA at MDW because of managment's total incompetence. I think AirTran could give SWA a run for their money in MDW and certainly hold their own. I think AWA could also co-exist with SWA in MDW, they have proven that they can compete with SWA.

I just wish I'd be around to watch.

 

[UALjan15]

Your last statement reveals how little knowlege you have about AirTran. Actually, we have been reducing the hub-and-spoke structure. In the past three years, we have increased the number of flights by nearly 50%, yet Atlanta has grown by only about 28%. More and more directs are added each month.

Hey, I actually learned something sorting through this drivel. I always thought of AirTran as pure ATL hub-and-spoke, but I checked out your website (http://www.airtran.com/destinations/routemap/index.jsp) and was blown away by how much you guys have grown. Especially in flights not originating or destined for ATL. BTW, that interactive map on the website is very slick.

 

[Ty Webb]

Wow. I hadn't seen that route map . . . thanks for the link. I guess I learned something, too.

When I started here three years ago, we had 350 flights a day, now it is somewhere around 530, I believe. 1000 pilots now, and supposed to be 2000 in the next four years, according to the COO.

 

[mohrmjr]

For those of you that are not familiar with AirTran... Southwest does not fly to many markets we serve. Southwest is big in MDW but they don't serve BOS,LGA,EWR,DCA,IAD,RSW,SRQ,DEN,MSP,PIT etc... If AirTran gets slots at LGA and BOS... there will be no competing service other than SWA flying to BWI from any airline at MDW. These are big business markets and right now SWA is still avoiding the larger markets that have a potential for delays. AirTran is very successful in these cities already.

For example out of BWI AirTran is having huge success. Most markets out of BWI do not even compete with SWA. So SWA is a factor on competing routes but if they don't fly there then... Mgt. has stated that BWI is more profitable than ATL..hence we are continuing to grow at BWI!! With or without SWA.

Southwest certainly doesn't fly to Akron/Canton..another huge AirTran success city and Dayton, OH, not to mention Flint and Blomington/Normal,ILL.

Additionally whatever the City of Chicago posts as who has what gates this stuff changes from day to day. We could lease additional gates from CO during an off-peak period etc... airlines make it work. If the ATA gates do not come through folks have a plan 'B', 'C' etc... Airlines swap gates all the time...

 

[CitrusGuy]

Finally somebody hit the nail on the head. We are not gonna pay $90M for the privilege to punch an 800 pound gorilla in the nose. I think AirTran will expand into markets not served by SWA or in underserved markets (by LCCs). SWA has always been a smart competitor and is not gonna get involved in any silly turf games unless it helps their bottom line. I don't think even the so called financial experts realize this. If you view AirTran's and SWA's route structur there is very little overlap if you look at nonstop flights. Just my 2 cents.
Citrus

 

[75M]

OK, well before this all came down, I spoke to a management pilot for SWA who said that SWA does very well when they split an airport with an airline who compliments their service (as opposed to sharing an airport with an airline who competes for the same passengers).

I think the relationship between SWA and TZ at MDW was perfect, TZ had the Carribbean, Mexico, longer haul, etc, vs. what we all know SWA does. The problem was that ATA didn't have the RASM to make it work, while their costs were admirably low the revenue per available seat mile wasn't working.

Hopefully (and I think it will be) our strategy will be to compliment SWA and not compete directly against them on the majority of our routes.

 

[CaptSeth]

We have a great thing going, management BLEW it by buying inapropriately sized aircraft for too much money. If we bought the -700 or the 717, we wouldn't be having this discussion at all.

Incidentally, I told them personally in 2002 the airplanes were too big. They blew me off, even though we could probably have converted -800 deliveries to something else. What do I know? I'm just a jerky pilot...

 

[vc10]

Then why did Airtran just announce MDW service including three overlapping markets---FLL, TPA, MCO?

For those of you that are not familiar with AirTran... Southwest does not fly to many markets we serve. Southwest is big in MDW but they don't serve BOS,LGA,EWR,DCA,IAD,RSW,SRQ,DEN,MSP,PIT etc... If AirTran gets slots at LGA and BOS... there will be no competing service other than SWA flying to BWI from any airline at MDW.

 

[fletch717]

Because VC10 the florida market is where over 50% of our revenue comes from. As a whole we don't go head to head with southwest on most of our routes. I might also point out that TPA-BWI, MCO-BWI,TPA-PHL,MCO-PHL,FLL-BWI are all routes we share with LUV.

Fletch