Actually, AirTran took on Allegiant by going into the secondary markets already served by AAY. Even emulated the same low frequency/twice a week type service that AAY does. AirTran's difference was going right into MCO.
Allegiant is simply defending their turf.
I know AAI's CASM is about 9.5 cents, anyone know what AAY's CASM is? My bet is it's higher, due to lack of frequency, despite the lower salaries.
This is a very important time for MCO. MCO has always had a very low ticket yield, Actually one of the lowest in the world. We are now going to see for the first time a true battle royal. The LCC's that have taken over MCO are going to be tested for the first time ever from a new ELCC ( Extreme Low Cost) business model. This has never been done. The LCC's are the expensive outfits in town, that's just crazy to think that way.
I don't think that the battleground is going to be a broad as you think. SWA, JB, Spirit, and Airtran dont serve many of the secondary and third tier markets that Allegiant has developed. And for some reason I dont see Gary Kelly starting Bangor anytime soon. There will always be rumors that WN is opening Allentown and GSP but these have been staple for decades. I recently read that Allentown has been courting WN since 1995 with no success. IF anything I see this type of compeition really hurting LCC and Delta. Both carriers do the secondary markets with their subsidiarys, with dismal yields already in MCO, it will strain the big guys even more. Until Allegiant announces MCO to SWF, HPN, BWI, DTW, CMH, DAY, PIT, JFK, MHT, BTV, PVD, I suspect it will be business as usual. The legacies are most prone to further impact in MCO not necessarily the Low Cost models.
Very interesting. Many of those are secondary markets, at best, but it will make for a show. Airtran just announced DSM-MCO last week. Of all the markets to sprout dueling nonstops...