Airtran CEO takes a crack at the Republic/Midwest Deal

[twepilot]

I liked it when Fornaro said that the cost structure of the Repub EMB's were inferior. Of all the words he could have chosen..I love it!

RV

 

[Mongolikecandy]

I liked it when Fornaro said that the cost structure of the Repub EMB's were inferior. Of all the words he could have chosen..I love it!

RV

Was he wrong though?

 

[likeitis]

I liked it when Fornaro said that the cost structure of the Repub EMB's were inferior. Of all the words he could have chosen..I love it!

RV

Exactly, It points to the fact that the only way he can make Midwest work is through republic's much inferior contract. The emb is more costly per pax mile than the 717 but he makes it up by paying the pilots nothing. If the YX pilot's hold the line long enough boeing will have all the 717's back and republic will be flying the entire fleet with connect on the side. Clearly the arbitrator will see that this is then outsourcing. Only thing that sucks is the YX pilots will have to wait until they are all out of a job prior to this. Doesn't matter to me because I'd rather get a fat check from Republic for the contract violation then fly aircraft and receive a paycheck with republic letterhead.

 

[gt1900]

You mean to tell me AAI is going to almost double the amount of flights to MKE by the end of the year and there hasn't been a single press release about it???? Common guys!!! AAI will not be up to 59 flights by the end of the year. It takes a while to get things going. We are going into August right now so we would have to be adding almost 5 flights a month. Its not in the computer now, and they are already selling tickets for those time frames. Now, we might be up to around 80 by next summer, but to add that many flights in the next 6 months just isn't going to happen. Unless they have already announced it, and I haven't seen it. Remember all the hubub when we added this summers schedule in MKE? Adding that many flights would be a major expansion, yet there hasn't been 1 press release yet. Wonder why? Because it isn't gonna happen. Not in 09 at least.

 

[jetdawg]

who is calling us "common"

I have been called alllot but it has been at least two days since I have been called common.

 

[Andy Neill]

who is calling us "common"

I have been called alllot but it has been at least two days since I have been called common.

I'm pretty sure it's gt1900.

While we're on the subject, who had the temerity to call you allot?

 

[gt1900]

You internet english professors crack me up!

 

[Moustache]

AirTran is really stepping up their game in mke. They are very lucky they have that headstart on the one and true low fare leader, southwest. This gives Tran a semi-chance. As far as I understand, all those midwest customers are still flying midwest since its become an all RJ operation. As long as the products are similar between old and new midwest, there's a good chance the customers will remain. Midwest is the hometown carrier, and even though fares dictate a lot, the hometown airline thing still has some say. Now if tran and southwest start offering unrealistic fares (like $10), that's when people MAY leave the hometown carrier and all carriers start bleeding themselves to death in mke.

People have left YX already...they know the difference between a E170 and a 717 w/ 88 seats..........only Republic seems to be confused about it.

 

[Moustache]

Considering that Airtran's total CASM is now 10% lower than Southwest's (and may be increasing due to Southwest's more upside down hedges), I think Airtran will due just fine. When Southwest and Airtran start offering $39 fares to fill up the first 60 seats of their 737s, who do you think will win that battle long term, Airtran, Southwest, or Republic? And for those that want more than the coach only seat, Airtran offers a two-class product.

My bet on MKE marketshare rankings in 5 years is:
1) Airtran
2) Southwest
3) Midwest
4) Delta.

I think you can take Midwest out of that list

 

[GOULET!]

Take Midwest off the list and insert Delta in 3rd...probably even 2nd unless SW does some big expansion out of MKE.