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Originally Posted by 11atsomto
(Post 3899671)
Intentionally operating at a loss to starve out smaller competition. I believe that was the playbook for Starbucks massive growth in the 90's and early 2000's.......although I'm not sure it's analogous to Airlines in a smaller ( at least smaller than SF Bay Area, Metro NY, LA Basin Houston, Chicagoland and DC metro) market.
You may be thinking of Amazon that was operating at break even as they expanded. They are about the only company that has pulled off the grab market share at a loss, then turn it around model. Hasn’t worked for the airline industry yet, and it’s been tried a lot. |
Originally Posted by AF OneWire
(Post 3899694)
Starbucks did not lose money in the 90s or 00s.
You may be thinking of Amazon that was operating at break even as they expanded. They are about the only company that has pulled off the grab market share at a loss, then turn it around model. Hasn’t worked for the airline industry yet, and it’s been tried a lot. |
Originally Posted by 11atsomto
(Post 3899671)
Intentionally operating at a loss to starve out smaller competition. I believe that was the playbook for Starbucks massive growth in the 90's and early 2000's.......although I'm not sure it's analogous to Airlines in a smaller ( at least smaller than SF Bay Area, Metro NY, LA Basin Houston, Chicagoland and DC metro) market.
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Originally Posted by SoFloFlyer
(Post 3897530)
BA, Virgin, GOL, Emirates, Copa, Azul and many others fly into MCO. DL does MCO-AMS on a 330. Maybe HR too (could be wrong on this one)? The demand is definitely there. Some of these carriers are our code share partners. I believe that UA is focusing on polishing their hubs before expanding MCO. Any new 787 deliveries go straight to the hubs. Hopefully in 2027, we’ll turn a corner with deliveries and we start expanding MCO/TPA.
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Originally Posted by GPullR
(Post 3901885)
DL just cancelled their mco-lhr after barely starting it. Yields just too low.
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Originally Posted by SoFloFlyer
(Post 3901991)
I did see that, but I wonder if it had to do with Virgin also flying into MCO. I know DL/Virgin codeshare so that was my initial thought. Virgin MCO-LHR always had unfavorable loads for nonrevving
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Originally Posted by SoFloFlyer
(Post 3901991)
I did see that, but I wonder if it had to do with Virgin also flying into MCO. I know DL/Virgin codeshare so that was my initial thought. Virgin MCO-LHR always had unfavorable loads for nonrevving
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Originally Posted by GPullR
(Post 3902037)
Loads to MCO are always full . Has nothing to do with yields. Yields to MCO have always and always will be low. Airlines have to fly there because of what it is. Same for Vegas. Percentage wise very few business travelers. Vacationers dont pay the bills.
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Originally Posted by JoePatroni
(Post 3902004)
SK was asked about international flights out of MCO at a meeting and his answer was essentially, “I can make a lot more money with the airplanes elsewhere due to the yield.”
I suspect it’s why DL pulled their route. It’s not that it wasn’t making money, but that airplane can make more money somewhere else. |
Originally Posted by Grumble
(Post 3902102)
Core point here is he didn’t say it’s unprofitable. Just not as much as other locations for a fixed amount or resources.
I suspect it’s why DL pulled their route. It’s not that it wasn’t making money, but that airplane can make more money somewhere else. |
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