RP Bonus

[RobCat]

I got a bonus..... its watching RAH get smoked out of MKE by Airtran

Yippie!!

I wouldn't bet my appliances on it.

 

[boomlrd]

Yes it has been direct deposited, I have received it that way for the past three years. S5 Alumni.

 

[Moustache]

Seems like an appropriate discussion for our internal message boards.

So does Airtran going for your jugular

 

[Moustache]

I wouldn't bet my appliances on it.

I would take that bet!!!!

 

[SF340Guy]

Flew 4 MKE legs today, and had a total of 18 open seats. All flights overlayed by AirTran and Delta. ATL and MSP. If that is our loads while getting smoked out, so be it.

 

[Wesb737fo]

Flew 4 MKE legs today, and had a total of 18 open seats. All flights overlayed by AirTran and Delta. ATL and MSP. If that is our loads while getting smoked out, so be it.

Loads don't mean jack squat dude, it's the price of the ticket. The flight crews could work for free and you still wouldn't be profitable if your CASM is high and you can't raise ticket prices because you are in a steel cage death match with two other LCC's. Not trying to flame you here. What is your RASM vs. CASM? That's how you know if you're making money.

 

[SF340Guy]

Well, as bad at business as BB has proven he is, I assume the tickets were sold at a Buy 1 Get 5 Free Sale. So that being said, I am sure we lost between $800 and $100,000 per flight.

CASM on the 170 fleet, per the 10Q is 8.9c. 71 people to MSP needed to pay $29 per seat to make it profitible, that one flight. Did I do that right? (8.9*76)/71?

AirTran CASM per their own 10Q is 9.22c.

I don't know RASM.

On a different note. Does anybody know what is going on with the AirTran / Frontier code share? If AirTran is "going for the jugular" in MKE, how long will BB go before he breaks up with them in DEN? Not to say that would not hurt us as much as it would them, just wondering.

 

[Wesb737fo]

Well, as bad at business as BB has proven he is, I assume the tickets were sold at a Buy 1 Get 5 Free Sale. So that being said, I am sure we lost between $800 and $100,000 per flight.

CASM on the 170 fleet, per the 10Q is 8.9c. 71 people to MSP needed to pay $29 per seat to make it profitible, that one flight. Did I do that right? (8.9*76)/71?

AirTran CASM per their own 10Q is 9.22c.

I don't know RASM.

On a different note. Does anybody know what is going on with the AirTran / Frontier code share? If AirTran is "going for the jugular" in MKE, how long will BB go before he breaks up with them in DEN? Not to say that would not hurt us as much as it would them, just wondering.

Don't know for sure, but I don't see any reference to it on the AirTran website.( Usually there is a link to the F9 route map, not there anymore).

I don't know about going for "anyone's jugular" but it has always been the Tran plan to expand MKE. They feel they can compete with anyone. All kinds of issues going on.

The non fuel CASM at AAI is around 6.0 cents per seat mile. On the 737 (137 seats) that is about 8.22 dollars per mile. Ave. stage length is around 770 miles (maybe a skosh higher now) so doing the math the non fuel cost averages around $6400 for the typical leg. With fuel around $2.00/gal and average burn around 1400 gal ($2800). Total cost between $9000-$10,000 per ave. stage length. What is not apparent is the value of fuel hedging, collaring etc.etc. when ballparking profitability.

What is apparent is that by comparing both companies non-fuel CASM's and our pay rates, you and I could receive $25/ hour pay raises and barely budge those numbers. Do the math. The front end on my typical flight averages around $200/ hour. So a $25 dollar an hour pay raise for both guys up front barely budges our non fuel CASM. You guys are somewhere around half our rate (not flaming just informing) so bottom line is we are both underpaid.

As far as competing, with both companies total CASM's around 9 cents per seat-mile, the difference comes down to generating revenue. With 30 to 40 less seats on the bigger E-birds compared to the 717 or 737, it is harder to make the same dollars per leg where we compete directly. Which is why I assume the F9 buses are now in MKE. Now with SWA coming in, it gets harder for both of us.

 

[Homer Jay]

Flew 4 MKE legs today, and had a total of 18 open seats. All flights overlayed by AirTran and Delta. ATL and MSP. If that is our loads while getting smoked out, so be it.

I just returned from my annual visit to Wisconsin to visit the in-laws and the word that Midwest is not TRULY Midwest anymore is starting to spread. I hope that BB get's his a$$ handed to him. GO GET 'EM AIRTRAN!

 

[Wesb737fo]

Since I have a head cold and nothing better to do, I took a look at the MKE to MCO, RSW, TPA legs for AAI tomorrow. All the direct flights are fairly full.

Looking specifically at the three MCO flights (2 737's, 1 717) loaded at 60%,100%,100% respectively. With the average fares (2 wk adv. purchase) around $137 the revenues generated are approx. 11K, 16K, and 19K respectively ( this doesn't include the ancillary stuff or bus. class). Obviously a swag at the ave. ticket cost, but a conservative one anyway.

The cost to operate (based on .06 cents per seat mile and $2/gal. jet A) runs around $11, 800. That means a total profit for the three directs around $11,000 (not bad for mid Jan flights). Bottom line. There is money to be made in MKE to Florida but to compete you'll need more F9 birds to generate the revenue since the E-planes can't do it direct. How many did they move from DEN?

It'll be interesting. I'll have to take a look at some of the E-190 routes where we go head to head.