AirTran selected for new DCA to MKE or JAX Flights

[Eagle757shark]

Its not the first time Midwest face competition in Milwaukee and it won't be the last time either.

I think Midwest knows a thing or two about protecting their own house and they have a very loyal customer base to help them.

Both Midwest and Airtran provide a different product, and you will find people who prefers one or the slightly cheaper price of the other.

I don't think that Airtran will be steeling Midwest's business customers but on the other hand they (Airtran) will be building a new different customer base.

AirTran's move is not about Midwest. AirTran is establishing a connector for their East-West flow and Milwaukee provides them with the best place economically to do that. Customers in New York, Boston, and the likes are connecting through Milwaukee to go to Los Angeles, San Fransico, and other west coast locations. Now as far as competition, the difference today is oil is over 100 dollars a barel and will be the wild card for all of us. Hopefully there is enough business to go around for all of us and we all make profits in 2008.

 

[fam62c]

Its not the first time Midwest face competition in Milwaukee and it won't be the last time either.

I think Midwest knows a thing or two about protecting their own house and they have a very loyal customer base to help them.

Both Midwest and Airtran provide a different product, and you will find people who prefers one or the slightly cheaper price of the other.

I don't think that Airtran will be steeling Midwest's business customers but on the other hand they (Airtran) will be building a new different customer base.

I agree with you to some extent but not completely. Time and time again surveys have shown that price is the primary factor when buying an airline ticket. This holds true with leisure AND business travelers. Corporate travel departments want the best deals as well because no company wants to throw money away. I'm sure that there are some people who will ride Midwest even if it costs more but I'll bet that it's only 10% or so of total travelers. Midwest can still be the airline of choice if they match AAI fares but I suspect that at those levels AAI will be making a profit or at least breaking even and Midwest will be operating at a loss.

I also agree that in the past Midwest has done a pretty good job at fending off competition in MKE. However, the Midwest product has eroded over time and will erode more when the seating plan changes. Midwest does have the advantage of better frequency than others in prime business markets and the Midwest Connect feed system that draws in travelers who don't want to drive to a hub. I also can't remember a time when a successful, profitable LCC made a big push in MKE. Midwest has mainly had to compete with RJ's and NWA. You're dealing with a different animal here. AAI has managed to grow profitably in ATL while taking on DAL, that says something about the ability of AAI to be a tough competitor. If NWA were to buy all of Midwest and integrate it then AAI has to compete with NWA and NWA is not a favorite of most travelers. I suspect that a lot of "loyal" Midwest customers may not show the same loyalty to NWA.

We'll just have to see how this one plays out but it will be interesting.

 

[CitationLover]

.....If NWA were to buy all of Midwest and integrate it then AAI has to compete with NWA and NWA is not a favorite of most travelers. I suspect that a lot of "loyal" Midwest customers may not show the same loyalty to NWA.

The midwest miles will drive those to stay within the NWA "family". People hate traveling on pinnacle/mesaba, but they still do. People might hate traveling on NWA, but they still travel on them.

And in terms of pricing power to DCA, 117 additional seats daily isn't going to do much to affect prices.

 

[Moustache]

Both Midwest and Airtran provide a different product

Besides cookies and higher prices, the products are strikingly similar---oh, and the YX management, well, you know

 

[GOULET!]

Uncle Tim wants a Moustache ride.

 

[gatorbird]

Who's got the digs on Spirit. I've done some thread searching, but not too much pops up. They seem to hav an interesting niche.

Then you didn't search very thoroughly. What do you want to know?

gator

 

[Captainjerky]

Ride

Uncle Tim wants a Moustache ride.

I want to watch Uncle Timmy get a moustache ride... And then I'll post the pics on the web...