Originally Posted by
82spukram
Like it or not Southwest is considered a LLC carrier. The business model is know for bringing lower fares just like JetBlue is know even though JetBlue claimed a premium on there tickets compared to other carriers on the route. So yes that exact southwest.
First off what is an LLC? Limited liability corporation?
Lower fares huh? Is that why they have the industry's highest Total System Passenger yield in 2014? Or the industry's highest total System Passenger Revenue per ASM (prasm) in 2014?
http://web.mit.edu/airlinedata/www/2...er%20Yield.htm
http://web.mit.edu/airlinedata/www/2...0per%20ASM.htm
Perception and reality are not the same thing. With recent (so to speak) expansion into more traditional legacy markets (LGA/EWR/BOS/SFO etc), Southwest's costs have risen as they chase the higher revenue potential in those major markets. Add in employee costs that have or will rise (new pilot deal, flight attendants etc) and this ain't the Southwest of old.
So I have a hard time seeing the #1 domestic carrier, being allowed to merge/buy the #7 carrier, especially given the heavy NY/ NE/DC area (BWI and DCA)/Florida concentration where they are primarily #1 and #2 in most markets.
(
Table 2-8 Top 10 Airlines by Domestic Enplanements: 2013 and 2014 | Bureau of Transportation Statistics)
So how would allowing Southwest to buy/merge its biggest East Coast low fare/low cost competitor be a good thing for competition?
Not sure any of the big 4 would be allowed to merge with JetBlue, as there are competition issues with each. (UAL probably having the least overlap of the 4 except for JFK/EWR)
DC