AirTran draws the line

[lowecur]

In the first salvo in what would appear to be a pre-emptive strike, AirTran has announced service from Rochester to Boston effective July 6th. Jetblue has already announced service from sister city Buffalo, and I'm sure Rochester was slated for announcement in the next few months as further 190 deliveries arrive.

AirTran made a similar announcement a few months ago from BOS/IAD, but backed off as Jetblue made their announcement a few weeks later. I don't think that will happen here, as AirTran has a strong position in the Rochester market and knows they must face Jetblue sooner or later. This was a smart move on AirTrans part, as now I don't think Jetblue will challenge them. Jetblue has too many other cities to place their 190s with little challenge from an LCC, and that's where I see them going in the next 12 months.

The caveat is Neeleman is an extremely competitive person, and he may choose to lose money on this route just to make a point. Naah!

imp:

http://biz.yahoo.com/prnews/060328/nytu041a.html?.v=1

 

[mnboyev]

So what... small potatoes in my opinion.. there is plenty of revenue for both. As long as both dont dump seats for reasons of ego... that would be the typical airline mentality... I dont believe Neelman operates that way ?

"Every other start up wants to be a United or Delta or American. We just want to get rich" Lawrence Priddy 1996

"If the Wright brothers were alive today Wilber would have to fire Orville to reduce costs" Herb Kelleher June 8, 1994

"This is a nasty, rotten business" Robert Crandall

 

[lowecur]

So what... small potatoes in my opinion..It may be small potatoes but this is not about revenue, it's about marking your territory on a route that Jetblue had every intention of starting up. there is plenty of revenue for both. Weak market with only 4 n/s ERJ flts (200 seats) from US Airways with high fares. AAI will stimulate the market to some extent with lower fares and a better product, but adding Jetblue to the mix will only saturate capacity until a clear winner is determined. As long as both dont dump seats for reasons of ego... that would be the typical airline mentality... I dont believe Neelman operates that way ? No dumping of seats on this route, but Neeleman has shown a willingness to lose money on a route where Joe Bob LeoFornio has not. Neeleman may test Joe Bob or in my opinion he may just ignore ROC for now and focus on less contentious routes.

"Every other start up wants to be a United or Delta or American. We just want to get rich" Lawrence Priddy 1996

"If the Wright brothers were alive today Wilber would have to fire Orville to reduce costs" Herb Kelleher June 8, 1994

"This is a nasty, rotten business" Robert Crandall

.....

imp:

 

[mnboyev]

Exactly the problem.. 'marking territory'... doesnt happen now with the 'new' mentality. Flights are routed based on profit only. period. Revenue, Revenue, Revenue.

Loose money on a route to gain share.. well, that happens everywhere.. Delta did it in VPS, TLH, JAX, CAK... Bla Bla Bla.. NWA did it in FNT... No secrets... IAD-BOS... no secret there either.. no sense flying for nothing. But hey.. if you want to .. go ahead.. (seems like their thinking).

If Jet Blue wants to waste a little more dough to enter markets.. what the heck.. However, I dont think the 'new breed' carriers think like the ol legendary machines. But I do understand what your saying.. you might be right in the end... time will tell...

We just fly the jets and be as nice to the pax as we can. Ding Ding... Hey sweetie.. can I have another cup of that gourmet coffee back there ? Yeah.. Black. thanks. Good discourse cur.

Just another regular line pilot.... Go big blue... nice counters in BOS.