Would a major buy Allegiant?
05-03-2015, 03:39 PM
#41
Runs with scissors
Joined APC: Dec 2009
Position: Going to hell in a bucket, but enjoying the ride .
Posts: 7,728
I flew the Song flights quite a bit, they were always full and the passengers loved them (because they had the live TV). Management said it never made money.
I ran into one of our Marketing guys about the same time the company was closing Song down, I asked him why, if Song was so popular, they were closing it down.
He said, "Those aren't High Value Customers. Those are just families going to Disney World, they will buy the cheapest tickets they can find.".
So there you go. Delta is focused on the High Value Customer. They are not interested in flying a family of 5 to Disney on the cheap.
I ran into one of our Marketing guys about the same time the company was closing Song down, I asked him why, if Song was so popular, they were closing it down.
He said, "Those aren't High Value Customers. Those are just families going to Disney World, they will buy the cheapest tickets they can find.".
So there you go. Delta is focused on the High Value Customer. They are not interested in flying a family of 5 to Disney on the cheap.
05-03-2015, 04:23 PM
#42
Gets Weekends Off
Joined APC: Mar 2014
Posts: 3,102
Originally Posted by John Carr
MULTIPLE TIMES. Song, DeltaExpress, TED, Shuttle by United, CAL Lite, MetroJet. Although I don't know if those would classify as ULCC as quoted. Or even LCC. The joke was "they're not a low cost airline, their simply a low fair airline".
Don't know all the specifics, but I thought that Shuttle by United ACTUALLY did a decent job, just poorly managed by standard management at UAL. Much like their DC-10 cargo operation. "There's no money in cargo....."
Don't know all the specifics, but I thought that Shuttle by United ACTUALLY did a decent job, just poorly managed by standard management at UAL. Much like their DC-10 cargo operation. "There's no money in cargo....."
05-05-2015, 12:46 PM
#44
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,522
Originally Posted by Packrat
I'd venture to guess that scenario is very likely. AS can't compete with the DAL incursion into SEA. Adding one flight a day to a multitude of different destinations isn't going to cut it.
However, combine the HAL capacity with the AS West Coast route structure and you would have a super-niche operation. The success of that combination would be highly dependent on which management team takes the reins.
However, combine the HAL capacity with the AS West Coast route structure and you would have a super-niche operation. The success of that combination would be highly dependent on which management team takes the reins.
05-05-2015, 03:29 PM
#45
Gets Weekends Off
Joined APC: Jul 2013
Position: Wicked Artsy, Moderately Fartsy
Posts: 194
Originally Posted by gloopy
HA is radically over leveraged though. Their debt per capita is stunning. And they are perhaps the most vulnerable to a single city ME3 capacity dump assault. Niche + niche doesn't really accomplish much for either. It may delay the inevitable consolidation for them by a year or three at the most.
Thread
Thread Starter
Forum
Replies
Last Post
