Spirit of NKS, Part II
#501
There is a whole another income segment down below that. It is 20% of the total in Europe and only 5% in the USA. (I think Ben said that during the call.) There is another 15% to be had, possible even more. SW and AA decided they want some of that. DL and UAL will follow and they will do it while Spirit and Frontier is still small and weak. The longer they wait the harder (more expensive) it will be to fight us or perhaps take over.
#502
So far we have always adjusted in some way to market changes. We went from domestic to Central America first. Then when markets opened up in the USA we went more domestic, into large markets, with a small presence to avoid competition. What is next? They said 20 (?) new destinations in 2016. Not very many new cities left except SEA. They could be destinations from existing cities except we are not getting gates anywhere. Someone in Miramar is crunching numbers right now. We will see soon.
IND, BNA, RDU, CLT to name a few large growing metropolitan areas we don't serve...
STL & MEM might have shrinking populations, but they seem to have our customer base...
Connect those dots with our core market.
#504
line holder
Joined APC: Nov 2008
Position: CA
Posts: 69
Absolutely! Why waste pilot board bandwidth with stuff related to making a pilot more money.
Please keep on posting investor related stuff. I'm sure Wall Street looks to APC for direction.
Somehow, I thought that Spirit was unionized, was a working mans pilot group. I guess I must have missed something along the way.
Please keep on posting investor related stuff. I'm sure Wall Street looks to APC for direction.
Somehow, I thought that Spirit was unionized, was a working mans pilot group. I guess I must have missed something along the way.
#506
Gets Weekends Off
Joined APC: Jul 2008
Position: 320*****
Posts: 487
I think there's a reason Dal & Ual aren't being as aggressive; they've both been down this road before (Ted, Song) and they know that low price/higher cost doesn't work in the long run. American never really dipped their feet in that pool, they'll learn, or burn through their $10 billion in cash while ****ing off investors... Either way, what they're doing is not sustainable. History has proven that.
It is sustainable. They have tried it out of desperation back when Delta and UAL was still weak. I don't remember how many seats Song had. I doubt it was 30% more. I don't think they had ancillary revenue either. A lot has changed since 2006 when Song got shut down. The big guys are strong again. AA is flying a few 321s with like a 100 seats. They are definitely experimenting. If you can put 50 good people onto a CRJ 200, have them board through the ramp in the rain, throw their bags off due to fuel, and then fly them for 2+ hours into CVG, and still call that Delta Airlines and charge accordingly. Yes. You can also put them onto a 320 with 30% more seats and unbundle the ticket price.
Uhhhh, lots more than just Seattle (which is a modest population growth city).
IND, BNA, RDU, CLT to name a few large growing metropolitan areas we don't serve...
STL & MEM might have shrinking populations, but they seem to have our customer base...
Connect those dots with our core market.
IND, BNA, RDU, CLT to name a few large growing metropolitan areas we don't serve...
STL & MEM might have shrinking populations, but they seem to have our customer base...
Connect those dots with our core market.
#508
Gets Weekends Off
Joined APC: Jul 2008
Position: 320*****
Posts: 487
You are right. I misread that. I agree. If they just simply will try to match our price and not change anything like seat density and ancillary stuff... yeah that is not sustainable.
#509
Gets Weekends Off
Joined APC: Feb 2013
Position: CA
Posts: 1,210
With current fuel it absolutely is sustainable. High fuel price would hurt AA more than Spirit in this battle, but for now AA seems willing to fight.
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06-03-2008 05:55 PM