Originally Posted by
iaflyer
One thing the legacies can do is spread a lower profit on a BOS-LHR market over their entire network - so while they are losing $$, compared to the whole network it isn't a lot
That's what I'm wondering about. I agree that should be the battle plan but am concerned that short term next quarter (etc) decisions could drive acquiescence and placation instead of the fierce competition that it warrants. Much better to lose profits and even fly at a loss for a while now to nip this in the bud than to allow it to mushroom into 100,000+ lay flat TA seats a year plus all the other negative pressures on economy and cargo.
And with Delta building up BOS with service to non-hub markets, it won't be long before we see LHR-BOS-CLE or LHR-BOS-DEN (or whatever), competing with JB for the whole trip.
Agreed, and hopeful it happens. BOS is a stellar market and while I don't expect DL to knock JB out of the top spot there (its probably not logistically possible even in theory) DL should absolutely become the dominant #2 airline there regardless. Premium TA flying from any major market should be viewed as a must win scenario, whatever the cost, however long it takes.
In the end, the wide bodies (lower cost per seat mile) and large network the legacies provide I think can match the "cool" factor of JB and the fresh service they provide.
Agreed, to a point. But someone is going to have to give up existing premium TA marketshare to accomidate it, and more and more as it grows. A premium lay flat seat at less than half the price isn't just "cool factor" anymore; its an agressive and openly declared fare war by a motivated and dedicated competitor that warrants the fiercest of aggressive and competitive responses. Appeasement is a guaranteed long term loss of revenue, profits and marketshare.