kansas

AMR operates 6,700 flights per day. We have about 300. Them losing money to match our prices on ~100 flights per day won't cause much more than a small dip in their profits. But it will significantly affect us.

falcon2000aj

Geez, I wish Wallstreet would get off this RASM measurement to judge an airlines stock valuation.. Why don't they go back to sheer profitability numbers instead.. We just made $76 million with a huge melt down.. Everyone has known our RASM would drop.. Customers are getting more travel savvy with us and we knew airlines would begin to try and compete with us.. With our CASM below 6 cents and dropping with every new ac delivery it takes us $50 to break even on a seat per 900 mile stage length. Our planes are full on almost every flight....

Lobaeux

Because they need a way to make comparisons, and Ben addressed that in the latest call.

I don't think he's particularly worried about American or any other legacy matching our prices. We go after different customers. We are not going to steal their business customers who need frequency, we're not taking their international customers, the leisure travelers who travel on their miles or perks either. We're not going to get the government customers or those who fly to destinations we don't serve. There won't be any price matching on those flights.

So, you look at the type of customer we serve, the discretionary traveler. Of those 300 flights a day we do, how much overlap is there with American? And of those, how many of the seats on those flights will be priced to match or beat Spirit's? Even if it's a whopping 10% of the seats on a flight (I'd guess it's be more like 5%), that's roughly 10-15 seats per flight that are competing with us on price. I don't think it's a worry.

The worry is more on the legacies continuing their collusion to limit capacity. Yes, I think the Justice Dept. has something there. That's where we could run into trouble is once all three legacies decide to turn their eye towards us because of our growth.

Left Handed

I hope it does give us a wake up call. Our customer service will need to improve once we take a hit in load factors. When others match our prices, there will be no difference between us and them except service, and they will beat us with frequency.

JoeyMeatballs

KANSAS,

CHeck your PMs

gonyon

absolutely. they profited what 2 billion dollars last quarter alone? they could throw a few million dollars at us to eliminate us then make it all back up by jacking up prices after the fact and it would be but a small blip on their financial radar.

was much easier when we were really small. will be interesting to see how this plays out.

it is all the more reason to get a damn contract soon though

full of luv

So your happy that your justice department will try and force the majors to dump capacity? Seems ironic that an ULCC would want the majors to add capacity, shouldn't you be rooting for the majors to cower and pull out of leisure markets that the ULCC creeps into.

Lastly, the majors are hiring at a brisk pace and adding planes and routes to their operations, granted not at an irresponsible rate, and somehow that is collusion to limit capacity? GMAFB!

Dr Pepper

I am much more concerned about Southwest than any of the big 3. Since the Wright Amendment expired they have really put a hurting on everyone in the DFW market. They also have a large expansion planned for FLL and if they do the same thing there it could get ugly.

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RonnyK320

On another note, does anyone know why I was charged $18 for "travel" on my pay stub? I used a buddy pass, but paid for that by credit card when booking it. Do they charge twice now?

putzin

This was discussed earlier in the year, posts 11628 & 11632 (Pages 1163/1164). Seems plausible, at least from my limited understanding of running an airline.