ACAI is jumping on it,
If you listened to the 2nd quarter webcast our CEO stated that we expect to have larger aircraft on property and operating by 2nd quarter 2004, with or without release from the UAL contract.
If you look at a discount airfare site you'll see that the majors are charging high rates for RJ routes and routes with no LCC competition. A CASM of 10 cents is for mainline aircraft only competing against 7.5 CASM of LUV and 6.5 CASM of JBLU.
Take CAL for example:
2002
366 mainline jets
generating 80,122,000,000 ASMs
CASM 9.2 cents
Regional jets and turboprops(XJET)
188 aircraft
generating 6,219,000,000 ASMs
CASM 15.66 (first 6 months of 2002)
Regional jets are fairly minor component of a major airline in terms of total ASMs.
For the most part the majors are going head to head with LCCs with a CASM of 6.5 to 8.0 cents.
A regional airline that can get up and running almost overnight with 87 RJs and applying the same techniques that the mainline LCCs have applied will further squeeze the legacy carriers, while adding larger aircraft and applying pressure on long haul routes(6.5 to 7.6 CASM) out of IAD. So can CAL, DAL, USair, and UAL compete against ACAI's small to medium market rates while matching Airtran, Southwest, JetBlue, ATA, and Spirit on mainline routes?
It is not shown in the 10Ks but my guess is that the legacy carriers make a nice profit from regional aircraft because they can charge more.
http://travel.yahoo.com/
JFK-FLL AUG27/29 $204.00 DAL (JetBlue competition)
JFK-RDU AUG27/29 $553.00 DAL(operated by ACAI)
The stop through ATL is the same price.
Search the fare structure yourself.
If you listened to the 2nd quarter webcast our CEO stated that we expect to have larger aircraft on property and operating by 2nd quarter 2004, with or without release from the UAL contract.
If you look at a discount airfare site you'll see that the majors are charging high rates for RJ routes and routes with no LCC competition. A CASM of 10 cents is for mainline aircraft only competing against 7.5 CASM of LUV and 6.5 CASM of JBLU.
Take CAL for example:
2002
366 mainline jets
generating 80,122,000,000 ASMs
CASM 9.2 cents
Regional jets and turboprops(XJET)
188 aircraft
generating 6,219,000,000 ASMs
CASM 15.66 (first 6 months of 2002)
Regional jets are fairly minor component of a major airline in terms of total ASMs.
For the most part the majors are going head to head with LCCs with a CASM of 6.5 to 8.0 cents.
A regional airline that can get up and running almost overnight with 87 RJs and applying the same techniques that the mainline LCCs have applied will further squeeze the legacy carriers, while adding larger aircraft and applying pressure on long haul routes(6.5 to 7.6 CASM) out of IAD. So can CAL, DAL, USair, and UAL compete against ACAI's small to medium market rates while matching Airtran, Southwest, JetBlue, ATA, and Spirit on mainline routes?
It is not shown in the 10Ks but my guess is that the legacy carriers make a nice profit from regional aircraft because they can charge more.
http://travel.yahoo.com/
JFK-FLL AUG27/29 $204.00 DAL (JetBlue competition)
JFK-RDU AUG27/29 $553.00 DAL(operated by ACAI)
The stop through ATL is the same price.
Search the fare structure yourself.
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