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09-27-2010 04:30 PM |
Quote:
Originally Posted by flyallnite
(Post 877255)
So it's come to this, 32 years after deregulation... the endgame. SWA is now just like everyone else, and that's a good thing for all of us. The U.S. has too many airlines chasing too few customers. ATL has supported two airlines since EAL and AAI, and it wont' make any difference that the airplanes are now SWA. SWA has rational pricing. Valujet, Midway 2, Skybus... that was a blight on the industry. A strong SWA with presence throughout the USA will ensure that the days of waking up to a flavor of the week startup are over for good. DAL and SWA should coexist pretty well in ATL. SWA won't keep the business/first class. DAL will sell some coach seats to match the fares with SWA, regain the Airtran business flyer, and SWA will scrape up the interstate drivers and mouth-breathing WalMart shoppers just like they've always done. If SWA is going to compete in the NY/Southeast market, they have their work cut out for them with JetBlue, Delta, and AA. That's not to say they will fail, on the contrary, they will be very successful at doing what they've always done, which is selling coach seats at reasonable but profitable prices to people who might otherwise have driven. I don't see it having a substantial "bottom line" effect on Delta, or any other legacy for that matter. SWA will gain the last empty spot on the map and live off it's reputation. But that's the end of the boom days for them, the stock growth and the quick turns. Welcome to middle age!
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Well said. I must admit I've been thinking about the implications all day.
Valujet, then AAI were one of several "hometown" airlines in Atlanta's history. AAI, with a cost structure lower than LUV's, has had mixed results once Delta went through BK. In fact, they've been reducing their ATL presence, and trying to find other avenues for revenue. That's with a First Class.
After the honeymoon, it gets back to business, and what everyone has to offer.
Arguably, the new airline will offer a lesser product, unless you're a bag, and then you go free. And if you like witty PA's, and can't stand double-breasted pilots with a southern drawl wearing wool (leather lovers: rejoice), you're gonna be very happy. If you like somewhat plump middle-aged girls (or guys) in WalMart shorts, rather than someone plump middle-aged girls (or boys) in slightly pretentious "designer" uniforms, it'll be like a little slice of heaven...
LUV says the story is about them bringing lower fares to ATL. The story rarely is what the Marketing Depratments says it is. I think the story is about them taking out a competitor that was an actual LCC (not an imagined LCC), and crowding out LUV as they both running out of places to work their model. And it was about gaining access in New York.
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