Originally Posted by
Andy
I'm not concerned about the route map; I'm concerned about the excessive capacity increase.
Wall Street wasn't happy when UAL announced 4-6% growth but has no problem with (excluding AMR, Delta) other carriers adding significant capacity. Southwest is planning on 5-6% capacity increase and Wall Street didn't blink an eye.
One thing I really like about Kirby is that he wants to add capacity more in line with our competitors. If it causes overcapacity issues, then we'll all have to reduce growth. And from looking at Spirit's numbers, they're adding more capacity than demand can support. When that happens, airlines tend to just put planes on new routes, hoping to fill them up while selling at fares where everyone loses money.
And let's not forget that Spirit has a lower CASM due to higher seating density. Their A320s hold 178 or 182 pax. Compare that with our 150 seats.
Good points! Kirby wants to expand regional flying, but RJ pilots all have their apps out at LCCs and majors. SWA and Spirit will hire over 1,000 RJ pilots this year. RJ pilots are fed up with the mainline partners. United will have to transfer the 50 and 76 seat jets to mainline or park them as we all leave to the competitors this year. Fun times!