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US Airways Lowers LGA/BOS - $100 R/T  
User currently offlineLowecur From United States of America, joined Jan 2005, 585 posts, RR: 0
Posted (7 years 12 months 3 days 17 hours ago) and read 3008 times:

The gloves have come off. US Airways, fresh from their splendid 2Q, has decided to put pressure on fellow competitors into the NYC market from BOS. Chief antagonist, Jetblue will surely feel the yield pressure. I'm sure this is just a probing at this point, but if successful, look for US Airways to go after the other Jetblue shuttle service to the Washington market.

http://www.prnewswire.com/cgi-bin/st...story/08-03-2006/0004409510&EDATE=

10 replies: All unread, jump to last
 
User currently offlineDeltaDAWG From United States of America, joined May 2006, 776 posts, RR: 1
Reply 1, posted (7 years 12 months 3 days 15 hours ago) and read 2933 times:

I smell a fight coming on. With B6 announcing more Florida flights for next year I think B6 is going to start seeing more aggressive competition from DL, HP, FL & even WN.

Yields and profits are going to suffer for B6 as well as others if something does not change in the next year or so. As usual time will tell.



GO Dawgs, Sic' em, woof woof woof
User currently offlineJohn From United States of America, joined Sep 1999, 1374 posts, RR: 5
Reply 2, posted (7 years 12 months 3 days 15 hours ago) and read 2865 times:

Those fares, 54.00 each way ( plus applicable airport fees and security taxes), are NOT last minute type fares, they must be purchased roundtrip at least 14 days in advance, are nonrefundable and carry restrictions. That's Ok for the leisure traveler, but the bulk of shuttle revenue is generated from the higher yield walk up type fares.

User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2972 posts, RR: 14
Reply 3, posted (7 years 12 months 3 days 14 hours ago) and read 2859 times:

Very interesting move on US' part. JetBlue's fares were already low without the competition, so I don't think that they'll move lower. But we'll see...with US as a more lean competitor, this could get interesting. But on another note, this clearly implies that JetBlue was really hurting them with the JFK service - thereby showing that many people decided to go to JFK over LGA.

Does anyone think DL will respond and lower its fares as well?

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 4, posted (7 years 12 months 3 days 14 hours ago) and read 2822 times:

Quoting JetBluefan1 (Reply 3):
Does anyone think DL will respond and lower its fares as well?

Most probably. After all, as has been said, the most money to be made is off the more spontaneous bookings. Business travellers in this market don't book 14 days in advance, it's more like 14 hours, or in extreme, 14 minutes in some cases. These new fares are more aimed at filling additional seats than lowering prices on already-filling seats.


User currently offlineEjmmsu From United States of America, joined Oct 2004, 1692 posts, RR: 0
Reply 5, posted (7 years 12 months 3 days 14 hours ago) and read 2816 times:

I wonder, on the B6 JFK-BOS service, if they are taking away more leasure pax from US (rather than business pax). This would make sense as far as lowering the advanced purchase fare.


"If the facts do not conform to the theory, they will have to be disposed of"
User currently offlineScottB From United States of America, joined Jul 2000, 6712 posts, RR: 32
Reply 6, posted (7 years 12 months 3 days 13 hours ago) and read 2742 times:

Quoting JetBluefan1 (Reply 3):
But on another note, this clearly implies that JetBlue was really hurting them with the JFK service - thereby showing that many people decided to go to JFK over LGA.

I don't think the traffic numbers bear this out; US Airways' LGA-BOS traffic was flat or up year-over-year in January through March; they only saw a decline in April versus 2005.

This is definitely an interesting move on the part of US Airways; I wonder if one of the goals is to boost Shuttle traffic on some of the frequencies with less demand. The Shuttle flights tend to operate with very low average load factors (though certain frequencies are always full).


User currently offlineTOLtommy From United States of America, joined Dec 2003, 3288 posts, RR: 4
Reply 7, posted (7 years 12 months 3 days 11 hours ago) and read 2660 times:

Has there been any change in the walk up fare?

User currently offlineSupa7E7 From , joined Dec 1969, posts, RR:
Reply 8, posted (7 years 12 months 3 days 10 hours ago) and read 2606 times:

Quoting ScottB (Reply 6):
I wonder if one of the goals is to boost Shuttle traffic on some of the frequencies with less demand. The Shuttle flights tend to operate with very low average load factors (though certain frequencies are always full).

Yes, that's clearly it. As long as walkup is higher priced, even an $80 RT fare is useful to US and DL, since there is empty space galore on the shuttles.

The demand between bos-nyc-dc is nearly infinite. If cheap enough, you start drawing from the pool of people who (1) drive or (2) take the bus. Big pool there. Carrying proper amounts of that low yield traffic can boost the bottom line.


User currently offlineSspontak From United States of America, joined Aug 2004, 475 posts, RR: 2
Reply 9, posted (7 years 12 months 2 days 11 hours ago) and read 2417 times:

Delta Shuttle matches the $100 R/T on LGA-BOS.


Go Delta!
User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 10, posted (7 years 11 months 4 weeks 1 day 21 hours ago) and read 2288 times:

Quoting Sspontak (Reply 9):
Delta Shuttle matches the $100 R/T on LGA-BOS.

Well, didn't take them too long to follow US, though it only was a matter of timing anyway.


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