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WN And HP Routes In The West Question  
User currently offlinePanAm747 From United States of America, joined Feb 2004, 4242 posts, RR: 9
Posted (9 years 2 months 3 weeks 4 days 14 hours ago) and read 3550 times:

I guess I am trying to combine two threads into one question here. Bear with me...

While reading the thread about Busiest Domestic Air Routes, I noticed that here in the west, routes to PHX and LAS are dominated by two airlines - HP and WN. Not so unusual in and of itself, but it was recently reported that HP is posting a first quarter profit, and of course WN is doing its usual amazing job at staying solvent (to say the least).

Is there a reason both airlines are competing so successfully and mutually profitable on these routes? Is this simply a matter of the nature of a duopoly? Or do both airlines have extraordinarily good yet different business models? And if so, is this a model that could somehow be duplicated elsewhere in the U.S./world?

Thanks in advance!!


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5 replies: All unread, jump to last
 
User currently offlineRDUDDJI From Lesotho, joined Jun 2004, 1450 posts, RR: 3
Reply 1, posted (9 years 2 months 3 weeks 4 days 14 hours ago) and read 3539 times:

Well WN has very low costs. HP actually had a small loss before special items were included, but they are also a LCC. B6 made money last quarter, they are an LCC... hmmm...I see a trend here. I don't have time to pull up FL's most recent report, but IIRC they are very close to profitability too.


Sometimes we don't realize the good times when we're in them
User currently offlineDfwRevolution From United States of America, joined Jan 2010, 958 posts, RR: 51
Reply 2, posted (9 years 2 months 3 weeks 4 days 14 hours ago) and read 3540 times:

Quoting PanAm747 (Thread starter):
Or do both airlines have extraordinarily good yet different business models?

HP's buisness plan isn't radically different than WN's. They are like most LCCs with minor tweaks on the book WN wrote, they are more alike than they are different.

Quoting PanAm747 (Thread starter):
Is there a reason both airlines are competing so successfully and mutually profitable on these routes? Is this simply a matter of the nature of a duopoly?

PHX and LAS (especially) have lots of traffic, and there are pleanty of markets that support multiple airlines. Chicago (UA, AA, WN) comes to mind, though only WN is making money. WN has twice the market share as HP in LAS, and WN only has 36% of the market.


User currently offlineStirling From Italy, joined Jun 2004, 3943 posts, RR: 22
Reply 3, posted (9 years 2 months 3 weeks 4 days 14 hours ago) and read 3526 times:

Quoting DfwRevolution (Reply 2):
They are like most LCCs with minor tweaks on the book WN wrote, they are more alike than they are different.

The two biggest exceptions being seat assignments and a first class cabin.



Delete this User
User currently offlineBridogger6 From United States of America, joined Apr 2005, 710 posts, RR: 10
Reply 4, posted (9 years 2 months 3 weeks 4 days 13 hours ago) and read 3506 times:

Oh, and also and allowing pets, in-flight entertainment, and a buy on board meal program.

Quoting Stirling (Reply 3):
The two biggest exceptions being seat assignments and a first class cabin.


User currently offlineCactusTECH From , joined Dec 1969, posts, RR:
Reply 5, posted (9 years 2 months 3 weeks 3 days 23 hours ago) and read 3343 times:

and very soon all leather seats in coach courtesy of HP look out for a/c 675AW and 676AW they already have them

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