Thread: United Express ???
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Old 09-17-2012 | 01:04 PM
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MatchPoint
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From: AA Airbus
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Originally Posted by DryMotorBoatin
You're exactly right with these numbers. I've done them all too...part of the curse of being a commuter...endless boredom. That being said...there is more to the story than this. Between my home and ORD there are 10 flights a day. All 10 on 50 seaters. That's 500 seats. The first flight is 530 and the last flight is 1030.
The fact of the matter is...people like 1. options(am,pm) and 2. frequency. The 50 seaters give them that frequency. To take it to the extreme...it makes alot more sense to put 10 50 seaters on it throughout the day than just one A380-800 at noon and noon only. Sure the 380-800 would have a lower CASM than all those 50 seaters but the bigger airplanes are better utilized on longer routes. So with a limited number of airplanes it doesn't really make sense to put larger airplanes on really short route. While the CASM is lower...the M is so short that the savings really isnt significant. Whereas...putting one of your limited number of larger airplanes on a longer route makes alot more sense because the M is so long that the savings of the lower CASM really adds up.
Sure but you're jumping to an extreme when using an example of cutting flights from 10 to 1. Yes they want options but you can still give them options without running 10 RJ’s. Instead of 10 RJs you can use 4 - 737-700's (137 x 4 = 548 seats) or 3 737-700s plus 3 RJ's and still cover the route with good frequency. This is exactly what Delta has started to doing and their doing it with great success. Also the length of flight doesn't matter as much as you’d think (i.e. SWA with all their little hops). Delta will use the DC9 to fly from MSP to RST which is a 15 minute flight and they'll run the Airbus from MSP to FAR (45 minute flight). They run the larger equipment at peak times to increase seats when the majority of travelers actually travel and then supplement them with RJ's for those who aren't restricted by the work or school week. They reduced the frequency but not from 10 to 1 but 10 to 5 or 6. Does it work? Well just look at Delta’s financials.

Believe me, this is where we’re headed and it's a good thing.
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