DL scores minor victory against Airtran

[MedFlyer]

Effective Sept 6th, Airtran will abandon Tallahassee, Florida after 3 years of service. This market is a Delta stronghold that DL had fought vigorously to preserve.

Airtran had been flying TLH-ATL and TLH-TPA using 717's.

Apparently, RJ's can sometimes be competitive as DL used them to undermine Airtran on the TPA-TLH route.

http://www.tallahassee.com/mld/tallahassee/business/9202481.htm

 

[180ToTheMarker]

Maybe I'm wrong but TLH was all ASA until Citrus went there, then DAL sent 88's to complement ASA service...not sure though.

 

[MedFlyer]

Maybe I'm wrong but TLH was all ASA until Citrus went there, then DAL sent 88's to complement ASA service...not sure though.

DL had mainline service to TLH before Airtran arrived....they did add more flights once Airtran arrived.

 

[Networ-King]

I hate to say this, but the only reason Airtran cnxed the TLH flights is because one of the Ryan buses lost an engine cowl in flight and caused some serious damage. Its down for a while and Airtran had to put 2 717's on the ATL-MCO route to make up for the 1 bus. TLH or MCO? well seems like MCO is a better money maker.

 

[lowecur]

I think FL accepted subsidized payments from the city. Not sure, but maybe Tallahassee could no longer come up with the money. If that's the case, DL didn't drive them out.

 

[FDJ2]

I think FL accepted subsidized payments from the city. Not sure, but maybe Tallahassee could no longer come up with the money. If that's the case, DL didn't drive them out.

Then it would be the lack of government subsidies that drove them out?

 

[lowecur]

Then it would be the lack of government subsidies that drove them out?

I don't know if they use gov't subsidy, or if they get money from a travel bank. Either way, I don't believe it was DL.

 

[MedFlyer]

I don't know if they use gov't subsidy, or if they get money from a travel bank. Either way, I don't believe it was DL.

Airtran did have some subsidies, but those expired last year. The primary reason Airtran is leaving TLH is low loads. I would say DL is a big part of that since DL's planes out of TLH are quite full and DL has been continually adding flights at TLH. Basically, people enjoyed the low fares caused by Airtran, but chose DL to do their flying.

 

[lowecur]

Airtran did have some subsidies, but those expired last year. The primary reason Airtran is leaving TLH is low loads. I would say DL is a big part of that since DL's planes out of TLH are quite full and DL has been continually adding flights at TLH. Basically, people enjoyed the low fares caused by Airtran, but chose DL to do their flying.

Well if history is any teacher, DL will raise prices now that FL is gone.

 

[FlyBoeingJets]

Small jets will work in some markets. Tallahassee may or may not fit this model, but some passengers will drive a distance for cheap fares out of bigger cities and some won't. This is not the first market Airtran had to leave for one reason or another. Maybe Airtran is reallocting to a higher profit route.

I predict mainline will continue to keep loads and revenue up with feeder flights from select markets. The effect may not be very big, but it will help in some markets and hurt a little in others.

I know, I know this is the old business model that seems to be broken. It was expanded too much and has been taking a well deserved beating from the LCCs. But there is a place for it. I think hub and spoke is finally reaching the downsized place it should inhabit.

 

[FDJ2]

Well if history is any teacher, DL will raise prices now that FL is gone.

Good.

 

[46Driver]

From my understanding, a travel bank is not a government subsidy (i.e., taxpayer dollars) but rather money from the city's Chamber of Commerce that is tired of being strangled by high airfares. If Delta's prices rise significantly, expect TLH to try and convince AirTran to come back. Pensacola gives AirTran money for that very same reason - we were tired of being at the mercy (there was no mercy) of Delta's prices.