exphojump said:
Whether Virgin backs ACAI or ACA goes out independently it must be done quickly to capture market share. JetBlue began 3.5 years ago and is up to only 40 aircraft. ACAI has 118 jets, 30 turboprops, and over 1600 active pilots.
They could move quickly into the small to medium eastcoast, midwest markets and match JetBlue in large aircraft within two years, without straining the pilot pool.
One of the reason's 'Blue is so successful is b/c their hub is NYC, the largest city in the US. They have a market of at least 12 million potential customers right there (and their #2 market is LA, the 2nd largest city in the country). It takes about 150 small markets just to equal 'Blue's hubs! You can't just fly willy nilly up and down the east coast with fuel sipping aircraft with TV's in them and expect to compete with Jet Blue. And let's not fail to forget that Southwest, DAL, and US have all made claims on that market too. It's the best market in the country, and ACA will not be allowed to operate in it independently.
Trying to start up there would be suicide. The market is virtually saturated, and it will take a great idea managed by a visionary leader like Herb or Neeleman to succeed. Do you believe Moore is of the same caliber as these two? He better be if ACAI goes it alone, or the trip will be a short one.
DL has the southeast, CO the south, HP the southwest, AS the northwest, NW the north, US the east, and B6, AA, UA, and WN cover the whole spectrum (with DL doing a country cover too). There's only 3 markets open (the northeast, the midwest, and the west coast). All of these markets are covered, but not dominated. Nobody lives in the midwest, nobody takes planes in the NE when they all live within an hour of a big city, which leaves the CA coast as the only viable market on entry. Kinda and odd place for a company called 'Atlantic Coast' with gate ownership in IAD to try to stake a claim, huh? And UA, HP, and AS are already there, though everyone provides some service. Not impossible, but very difficult, for sure.
If I were ACA managment, I'd be praying for Virgins.
-Boo!