waveflyer
Well-known member
- Joined
- Jan 9, 2005
- Posts
- 10,005
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DIA market share
(Figures do not include international or regional service)
July 2006
Southwest —2.81 percent
Frontier — 18.02 percent
United — 34.39 percent
July 2010
Southwest — 16.99 percent
Frontier — 16.74 percent
United — 28.14 percent
Source: Denver International Airport
The problem with this approach is that the model assumes exponential growth if you do not raise fares. Simply put SWA will have to raise fares considerably to remain profitable as other airlines match SW prices. This is why SWA load factors have remained consistent over the years. If SW is allowed to grow untamed this is a good thing for pilots, as they pay the best salaries now. However, such growth is physically impossible, which is why, I have said SW will be bankrupt by 2009 if it continues on its current course. They would need over 1000 737's by 2009 to avoid it. They could raise fares and risk the capacity drop if other airlines do not match. Fuel going up in price would also help SW.