Originally Posted by
REF 5
Delta doesn't need to #1 in AUS. They just need to be competitive in AUS. Look at BOS and SEA. They are not #1 in market share but they are competitive. If you look at both SEA and BOS gate wise, they have more gates in BOS and SEA than what is proposed in AUS. Since Delta operates a hub and spoke, the real estate required to make a true dent would be quite substantial. As we know, hub and spoke is a great way to connect passengers but a inefficient use of gate utilization. On the other hand, SWA is a p2p, so doubling the gates, just by that definition will create bigger footprint. I don't have any data to back this up but I suspect yields are better in AUS than DAL or HOU. If Delta can get a slice of it, to them its worth it. Plus it dilutes the yields that SWA enjoys at the moment.
Hello, DAL guy here. Yes, we are #2 at BOS and #2 at SEA. We won't be #2 at BOS for much longer. JBLU is foundering there. We'll continue to capacity dump on them. We've opened the 330 pilot base there and we fully expect to add other fleets to base there. At SEA we are behind Alaska, but not by much. We have plans there and as our 350s continue to roll in expect more of a footprint there as well. If you think we're going to surrender AUS to you I think you'd be wrong. Big plans there.
The problem you all have is you don't offer premium anything. And you are at least a decade behind DAL and UAL on that. The market demographics have been shifting. People, the customers we (DAL and UAL) are targeting, want the premium experience. Do you have galleys in your planes? I don't recall seeing them. Do you offer anything close to D1 or Polaris? Not even your "first class" is comparable to DAL or UAL. Again, you are about a decade behind where the market is moving. UAL and DAL have seen it and they are working to secure that premium flyer.
in order for you to compete with them in the future you're going to have to build lounges, upgrade cabins and service and provide a truly premium product. UAL getting their cabins with more premium is going to give you guys some issues. They fly to more areas that are your "turf" than we do. However, AUS won't be one place we are going to sit idly by. That is a premium market and one you won't be able to compete for unless and until you offer something commensurate with what we and UAL offer.
Lot of friends that fly for you guys, I hope to see you bring your A-game here. But until you get the lounges, the cabin interiors and truly offer a premium product you will lose market share to us and UAL. It's already happening. You can keep flying Joe and Margarita around p2p but in the end the $$$ are in the premium customer.