You better hope fuel stays low or our Next Gen 737s will have a lower total CASM than your MD-80s even with your $70K year Captains. It is one thing for you guys to run legacies out of leisure travel markets, it is another thing for you to compete with Southwest, Airtran, or Jetblue. Why did you guys pack up and run so fast in SWF when Jetblue and Airtran started service there a few years ago?
You sound sure about that! When the cost of fuel was high how many fuel efficient aircraft did you sell or delay delivery on? Allegiant took delivery of airframes and was profittable when oil was $147 a barrel. Air Tran? That 737NG payment buys alot of gas for an MD-80! If Air Tran's goal is to compete directly with Allegiant in order to steal market share they will be successful....you are right Alllegiant will not stick around and fight. That is part of the strategy that has made AAY a profitable airline! My point is Air Tran, like NW willl have a hard time doing it at a profit. Isn't that the point! I know the TYS market did not work out to well the first time around for Air Tran.....and like many of the smaller markets you service, I don't think these new markets are going to be subsidized by anyone! Well maybe your management! By the way how is SWF these days...have not been there in a while?