GogglesPisano
Pawn, in game of life
- Joined
- Oct 20, 2003
- Posts
- 3,939
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I'm still convinced you don't work at delta.
It's interesting when DL is cutting international flying while SW is adding it. Quite the dichotomy.
Am I to take this to mean a "good margin for all" only applies to current market participants? If SWA comes to a market and fills seats with customers formerly flying on another airline but now choosing Southwest instead, that is the definition of competition is it not. If the product and price are superior, the customers will not change brands. If passengers are not shopping for a better alternative the current players have nothing to worry about and SWA will be flying empty aircraft until they decide to remove their capacity from the market.Let's see Red....
We can goto Manaus, Morocco, Tahiti, Fiji, Lyon (Again) all rumored to be on the destination lists. Nobody else is doing those.
Southwest will provide the industry with the much needed overcapacity (sarcasm included) and try to drag Spirit, JB, Alaska, Frontier and all the legacies into a battle for Mexico and close in cities already with enough seats provided with a good margin for all.......but SW has -800s now and we all must respect the new International Darlings. How's those Customs turns working for ya??
If cost structure doesn't equate to pricing flexibility, what does?Howard,
Your cost structure doesn't mean you will be the cheapest ride to anywhere....let's be honest....nobody picks an airline on service. Its a battle for the cheapest seat.
If cost structure doesn't equate to pricing flexibility, what does?
Stage Length Adjusted CASM Ex-Fuel @ 1000 miles:
Spirit.......................................................6 cents
Southwest................................................7 cents
American and Delta..............Approximately 10 cents
United................................Approximately 11 cents
More Airlines to follow ....United , American LH AF KLM BA
The cancer from Middle East is here and we need to stop it or we are going to be screwed
If cost structure doesn't equate to pricing flexibility, what does?
Stage Length Adjusted CASM Ex-Fuel @ 1000 miles:
Spirit.......................................................6 cents
Southwest................................................7 cents
American and Delta..............Approximately 10 cents
United................................Approximately 11 cents
You hit the nail on the head. The state subsidised airlines from the ME represent a major threat to the US legacies going forward. EK alone has 80 A380's, 46 77W's, and 115 777x's yet to be delivered. They just announced Orlando, 2nd daily Boston, and 2nd daily SEA with many more to come. North America is one of the major destinations going forward. In the next few years expect to see Emirates connect Asia with the US west coast.
It's going to be hard for DAL/UAL/AA to compete with an airline that pays A380/777 CA's 220k/year and ground staff slave wages. Not to mention all the subsidies.
It will be very hard. But everything has a cycle in aviation and the ME carriers can very easily go the other way. Easy come, easy go. If the Emir watches his $ do anything less than spectacular, he'll send into other industries. (Frankly, should have done tech or medicine) He may be forced to do that if the alpa effort succeeds. 380s may not have much of a secondary market value... So if you're emirates and you can't fly your shiny new subsidized jets anywhere... And you can't sell half of them... Hmmmm. Things can change very fast
The larger question Spaulding is where is the international growth for a company like Delta when this all settles out? verses say a company like SW?
Bill, for once we agree. There is always a reason why the airline isn't growing. There's always an excuse as to why we can't do X,Y and Z and for years the pat stand by answer by management has been financial. There always seems to be a carrot that is unattainable. But recently, all the far off financial pipe dream carrots are being fulfilled.We have soundly put our stake in the current size and fleet mix. Management praises the JVs and codeshares when the economy blows over there and then when things are turning around, they blame the strong dollar. There's always an excuse....